Tether has been pushing awareness around the new unit of measurement that it has coined to quantify on-chain gold. The name of this unit is Scudo wherein one Scudo is equals to 1/1000 of an XAUT (gold ounce).
Tether, that issues the world’s largest stablecoin – USDT, also issues the Tether Gold token, that is represented as XAUT. This token holds around 60 percent of the overall gold-backed stablecoin market, Tether had claimed in January this year.
Last month, the price of gold hit a new all time high of $5,594.82/oz. Amid geo-political tensions between the U.S. and Greenland among other issues, investors had rushed to invest in gold. At the time, Tether released the “Scudo” unit to let its XAUT holders send and receive on-chain gold in smaller amounts.
On Thursday, the official X handle of Tether Gold posted an awareness video on Scudo.
Each XAUT token represents one troy ounce of physical gold, Tether sayd.
At present, XAUT is trading at $5,050, CoinMarketCap showed. The token has a circulating supply of XAUT 519,820 with over 30,000 holders as of Thursday.
The USDT-maker has claimed that it is among the 30 largest gold holders of the world and has been purchasing the asset to maintain XAUT’s 1:1 ratio with one troy ounce of real gold.
Explaining Scudo Tether said, “By defining one Scudo as one thousandth of a troy ounce of gold (or of an XAU₮), Tether Gold enables clearer pricing, easier transfers, and more intuitive use of gold-backed value.”
It said this unit will eliminate instances of XAUT holders having to send or price assets in complex fractions of XAUT.
“Users can transact in whole or partial Scudo units, making gold more practical not only as a store of value, but also as a medium of exchange. For example, a good or service can be priced in Scudo rather than fractional ounces,” the blog post by Tether has explained.