Break gold into smaller pieces! Tether Gold mimics Bitcoin's "Satoshi" and introduces the Scudo valuation system

Tether introduces Scudo as the pricing unit for XAU₮, dividing gold into one-thousandth to lower the barrier and promote digital gold payments and practicality.

Drawing inspiration from Bitcoin’s “Satoshi” concept, Tether launches a new valuation unit for XAU₮

The leading stablecoin issuer Tether officially announced on January 6, 2026, the introduction of a new accounting and valuation unit for its gold-backed digital token Tether Gold (XAU₮): “Scudo.”

This move directly borrows from Bitcoin’s logic of dividing the basic unit into “Satoshis.” According to the official definition, 1 Scudo equals one-thousandth of an ounce of gold, which is 1/1,000 of an XAU₮ token. As gold prices hit new highs in 2025, traditional ounce-based trading faces challenges in small payments and precise pricing. The emergence of Scudo allows users to send and price in whole numbers or simple fractions, thoroughly solving the reading and calculation difficulties caused by excessive decimal places.

Gold prices surged 65% in 2025, outperforming stocks and bonds, making digital gold the top safe-haven asset

The launch of Scudo coincides with a historic year for the gold market. In 2025, gold prices achieved their strongest annual performance since 1979, rising approximately 74% amid de-dollarization trends, frantic central bank purchases, and ongoing inflation concerns. Gold prices once broke through the $4,500 per ounce mark.

Image source: TradingView Gold’s annual increase reached about 74%, with prices once surpassing $4,500 per ounce

In comparison, the S&P 500 index only rose about 16.4% in 2025, while Bitcoin experienced its first annual negative growth after the halving, declining approximately 6% to 8%.

Tether CEO Paolo Ardoino pointed out that gold has once again proven its status as the “ultimate store of value.” Through Scudo, Tether aims to further lower the barrier to gold ownership, allowing investors to hold this millennia-old safe-haven asset in a more flexible, fractional manner amid the economic uncertainties of 2026.

Naming homage to 16th-century Italian coins, Scudo aims to reshape gold payments into everyday use

The term “Scudo” is not arbitrary but carries deep cultural significance. It originates from the Latin word “Scutum,” meaning “shield,” a widely circulated metal token in 16th-century Italy, aligning with the shield symbol in the Tether logo.

Tether CEO Paolo Ardoino and CFO Giancarlo Devasini both have Italian backgrounds. This naming not only pays cultural tribute but also reflects the company’s ambition to shift gold from mere “asset holding” to “everyday payments.”

The current market cap of the digital gold token XAU₮ has approached $2.3 billion, nearly quadrupling over the past year. The introduction of Scudo will make gold-backed tokens more practical in digital wallets and decentralized finance (DeFi) ecosystems, beyond static assets stored in vaults.

Reserve transparency and physical redemption mechanisms keep Tether at the forefront of gold-backed tokens

Regarding reserve transparency, Tether’s official website shows that XAU₮ is currently supported by 1,329 physical gold bars, totaling approximately 16.2 tons, all securely stored in Swiss vaults. If including the gold reserves supporting $USDT , the company’s total gold holdings by the end of Q3 2025 reached 116 tons, valued at about $17 billion.

This scale makes Tether one of the top 30 largest gold holders globally, even surpassing the reserves of central banks like Qatar and Australia. Although competitors like Paxos issuing $PAXG exist, Tether maintains about half of the market share in digital gold due to its over 500 million users and strong liquidity. Holders can even request to redeem their tokens for physical gold bars, which the company will deliver to any address within Switzerland.

Further reading
Tether invests $100 million! Launches dual Bitcoin + Gold strategy, expanding into the global gold supply chain

From a safe-haven tool to payment infrastructure, the future of digital finance with gold and Bitcoin on dual tracks

Paolo Ardoino emphasized on social media that gold and Bitcoin are two core assets that complement each other in the digital age. With gold prices maintaining around $4,485 per ounce in early 2026, the value of 1 Scudo is approximately 4.48, aligning closely with practical application and daily payment needs.

Compared to Bitcoin’s 1 Satoshi, worth only about 0.001, Scudo offers a more moderate valuation scale. Tether has also launched Wallet Developer Tools (WDK) to encourage developers and AI agents to integrate XAU₮ and Scudo into various mobile devices and payment terminals. This revival of the digital gold standard suggests that gold will, through blockchain technology’s digital tracks, regain its historical status as a universal medium of exchange worldwide.