Scudo: Tether's solution to simplify fractions in Tether Gold

Tether has made a significant change to its tokenized gold strategy. The new unit called ‘Scudo’ transforms the way users interact with Tether Gold (XAU₮), removing the complexity of working with decimal fractions. Each Scudo is equivalent to one thousandth of a troy ounce of gold, allowing transactions with whole or partial units in a more intuitive way.

Why Scudo Simplifies Operations

The previous system required operators to handle multiple decimals to make small gold transactions. With Scudo, this barrier disappears. Users can now trade directly in whole units of Scudo without mentally converting complex fractions. This approach makes gold a more practical asset for everyday life and long-term store of value.

Full Backing by Physical Gold

The introduction of Scudo does not alter the core of Tether Gold: each token remains fully backed by physical gold stored in high-security vaults. Ownership verification remains on the blockchain, ensuring transparency and traceability in every transaction. Users can be confident that their Scudo holdings correspond to real gold, stored and insured.

Impact on the Ecosystem

This proposal positions Tether Gold as a more viable option for new users seeking exposure to gold without technical complications. By simplifying fractions and making tokenized gold trading more accessible, Scudo expands the potential for adoption across different market segments.