Tether introduces Shield: the new unit that simplifies tokenized gold trading XAU₮

Tether has announced the launch of Scudo, an innovative unit of measurement designed for its tokenized gold product Tether Gold (XAU₮). This initiative responds to a clear goal: democratizing access to gold as a payment instrument and store of value within the crypto ecosystem.

What is Scudo and how does it work?

Scudo represents one thousandth of a troy ounce of gold, or in other words, one thousandth of XAU₮. This denomination allows users to interact with gold in a much more practical way, eliminating the need to work with complex fractions that characterize traditional precious metal valuation systems.

Instead of conducting transactions using complex decimals of XAU₮, market participants can now trade in whole units or intuitive subdivisions of Scudo. This change significantly transforms the user experience, making gold both a more reliable store of value and a considerably more agile medium of exchange.

The physical backing that remains unchanged

The introduction of Scudo does not modify the fundamental structure or the backing of XAU₮. Tether’s gold continues to be fully backed by physical gold stored in high-security vaults around the world. The transparency and verifiability of these assets remain accessible through Tether’s on-chain asset tracking tool available to the community.

A step toward practicality

In a context where gold prices experience constant fluctuations, Scudo provides a more simplified valuation mechanism. This measure not only facilitates everyday calculations and transactions but also democratizes participation in the tokenized gold market, allowing a broader range of users to access this asset with greater comfort and confidence.