Scudo: Tether redefines the accessibility of tokenized gold by simplifying quotations

In early January, Tether introduced an innovative solution for its tokenized gold product Tether Gold (XAU₮): the introduction of Shield, a new unit of account designed to eliminate complexities in digital gold transactions. The move represents a concrete attempt to turn gold into a practical and immediate means of payment within the blockchain context.

What is Shield and how does it work

Shield is defined as one thousandth of a troy ounce of gold, equivalent to one thousandth of XAU₮. The stated goal is to make the use of complex decimal fractions, which have so far characterized transactions in Tether Gold, unnecessary. With this new unit, users will be able to operate with whole or slightly fractional amounts, without having to perform elaborate calculations related to decimals.

The practical benefit for the market

Simplifying price quotations and value transfers is the main advantage of this innovation. Where previously assets had to be quoted using intricate decimal fractions of XAU₮, it will now be possible to use Shield as a direct reference. This approach not only makes gold more functional as a store of value but also positions it as a more intuitive exchange tool for the crypto community.

The underlying structure remains unchanged

It is important to emphasize that Shield does not alter the underlying backing of Tether Gold. The backing remains fully guaranteed by physical gold stored in secure vaults, with on-chain verifiability through Tether’s asset tracking tools. The new unit of account is therefore a simple adaptation of the representation, not a modification of the guarantee supporting the token.

The introduction of Shield comes in a context where the price of gold has been steadily rising, making an agile and accessible calculation and exchange methodology even more necessary for all market operators.