The grandson of the Catholic Monarchs, Charles I, ruled over Spain from 1516 to 1556. He inherited a vast empire, taking upon himself the mission to expand it even further through the American conquests of the Aztec Empire in 1522 and the Inca Empire in 1532. These costly enterprises, so necessary for the expansion and consolidation of his possessions, proved a heavy burden for the Spanish economy in which political concerns overrode financial ones. The subsequent increase in fiscal pressure over cities gave rise to growing discontent. On top of that, the Crown borrowed regularly from European bankers, which ate up a large proportion of the shipments of precious metals arriving from America which, although it revitalised coins as a method of payment, also led to an excessive rise in prices.

When Charles was crowned as Emperor in Bologna in 1530 he also incurred in the payment of high sums to his main political and religious supporters. The resources—military and otherwise—spent in the construction of the Empire gave rise to the circulation of large sums of funds, provoking an increase in the money in circulation. In the early days of Charles I’s reign, several European countries used an aureus coin of lower density gold than the Spanish ducat. This meant that foreign visitors assiduously took ducats back with them on returning to their states of origin. Many attributed the flight of Spanish gold coins to other countries to the Flemish councillors in the retinue of the young King Charles. To solve the problem, the Cortes (parliament) meeting in 1523 in Valladolid requested the mintage of a new gold coin of lower density, with a purity similar to that of the French pieces. The result was the creation of the Escudo.

The Catholic Monarchs had set in motion the homogenisation of the Iberian Peninsula’s monetary system. The Spanish gold ducat weighed 3,6 g (23¾ carat), being the unitary gold currency (half doubloon) and the unit of accounting throughout the 16th and 17th century. It was coined for the first time by the Catholic Monarchs under the name of "Excelente de Granada", before being renamed the ducat.

One of the most outstanding artisans working at the Valencia mint was Alfonso Sánchez Dalmau, whose mark was a small lion visible in this four-ducat coin.

Obverse: A crowned bust of the king facing right inside a double frame a lobed inner one and a dotted circular outer one. Dotted . Around it the master’s legend and mark:

(cross) ⠆CAROLUS ⠇DEI ⠇ (shield with lion) ⠇GRACIIE ⠇REX

Reverse: A crowned rhomboid shield with the arms of Valencia inside a similar to that seen on the obverse. The legend:

(cross) ⠆VA.LEN.CI.A ⠇M ⠇(shield with lion) ⠆A.IO.R.IC.A.RUM ⠆