Stable Coin kingpin Tether announced the launch of Scudo, a new unit of account for its gold-backed token Tether Gold (XAU₮), designed to enhance the metal’s utility as a medium of exchange rather than merely a store of value. Scudo establishes one unit as equivalent to one-thousandth of a troy ounce of gold (or of an XAU₮)—a denominated approach analogous to Bitcoin’s Satoshi subunit. By enabling transactions in whole or partial Scudo units rather than decimal fractions, Tether Gold aims to enhance the metal’s practical utility beyond its traditional role as a wealth preservation vehicle.
Commercial goods and services can be priced in Scudos rather than fractional ounces, potentially facilitating gold’s reintegration into routine economic activity. To understand how big this move is, consider Tether’s position as the third largest cryptocurrency by market capitalization with a total market cap of $187 billion. Tether has unveiled Scudo, a new unit of account for its gold-backed token XAU₮, designed to boost gold’s utility as a medium of exchange rather than a mere store of value. Each Scudo equals one-thousandth of a troy ounce of gold (or of an XAU₮), a subunit approach reminiscent of Bitcoin’s Satoshi.
By enabling transactions in whole or partial Scudo units instead of decimal fractions, XAU₮ aims to enhance the metal’s practical utility and facilitate pricing of goods and services in Scudo rather than fractional ounces. This could help reintegrate gold into routine economic activity and broaden its use in everyday commerce. Tether sits among the world’s largest cryptocurrencies by market capitalization, with a total market cap around $187 billion, underscoring Scudo’s potential impact on gold’s role in contemporary finance.
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