Tether Borrows From BTC Playbook With New Gold Pricing Unit
Why Is Tether Changing How Tokenized Gold Is Measured?
Tether has introduced a new unit of account, called Scudo, for its gold-backed token Tether Gold (XAUT), as demand for onchain exposure to bullion rises. Scudo represents one-thousandth of a troy ounce of gold, or one-thousandth of an XAUT, allowing users to price and transfer gold in smaller, cleaner units rather than long decimal fractions.
The company said the update is designed to make gold-backed tokens easier to use as prices climb. As bullion rises, fractional ounces become less practical for everyday transfers and pricing. Scudo allows users to denominate value in whole or partial units that better fit typical transaction sizes.
The structure mirrors how BTC uses satoshis to divide a full coin into readable units. Instead of quoting gold transfers as 0.0037 ounces, users can transact in Scudo, reducing friction for smaller payments and onchain settlement.
Investor Takeaway
How Has Gold Outperformed Other Major Assets in 2025?
The timing of the rollout reflects gold’s strong relative performance. In 2025, bullion outpaced both U.S. equities and crypto markets, widening return gaps across major asset classes. The S&P 500 rose a little over 16% for the year, while BTC ended the period down roughly 6%.
Spot gold climbed to record levels, peaking above $4,550 in late December before trading around $4,485 in ahead January. The rally reinforced gold’s role as a defensive asset during a year marked by uneven growth, geopolitical tension, and shifting rate expectations.
As returns diverged, investor attention shifted back toward traditional secure havens. That move has been visible not only in futures and ETFs, but also onchain, where demand for gold-backed tokens has tracked bullion’s rise.
Why Is Tokenized Gold Gaining Traction Onchain?
Gold-backed tokens give investors exposure to physical bullion while retaining the transferability and assets. As gold prices rose through 2025, interest in tokenized versions followed, pushing the sector’s combined market capitalization close to its late-year peak.
According to The Block’s price data, tokenized gold products now carry a total market value of about $4.3 billion, just below the December 2025 high of roughly $4.4 billion. XAUT remains the largest product in the category, accounting for around half of that total.
Unlike , gold-backed tokens appeal to investors viewking a hedge against currency risk and market volatility while remaining onchain. That mix has become more attractive as diversify beyond purely crypto-native exposure.
Investor Takeaway
Does Scudo Change the Role of XAUT?
Scudo does not alter the underlying structure of XAUT, which remains fully backed by physical gold held in custody. Instead, it changes how value is expressed and transferred onchain. By standardizing a smaller unit, Tether is adapting the product to higher price levels and a broader range of transaction sizes.
This adjustment points to a broader theme in : usability matters as much as backing and compliance. As prices rise, unit design becomes more than a cosmetic choice. Assets that are hard to quote or move in practical amounts risk losing relevance, even if demand for the underlying exposure remains strong.
For tokenized gold, that challenge is more pronounced than for fiat-pegged stablecoins. A the value of each unit, making fractionalization essential for continued use beyond long-term holding.
What Comes Next for Tokenized Gold?
If gold continues to hold its lead over equities and crypto, tokenized bullion may draw more attention as a portfolio hedge that remains compatible with onchain finance. Smaller, standardized units like Scudo could make these tokens easier to integrate into lending, payments, and settlement workflows.
The category remains small compared with stablecoins, but its growth mirrors a broader pattern: onchain demand increasingly reflects performance in traditional markets, not just crypto-native cycles. Gold’s 2025 rally has pulled that relationship into sharper focus.
