The above badge may have hung from a ribbon or other device for military decoration.
From December 17, 1930 to January 15, 1931, 12 SM.55 flying boats led by General Italo Balbo made an historic demonstration flight from Orbetello, Italy to Rio de Janeiro, Brazil. It was a show of Italian aviation technology, and set the stage for a flight of 24 aircraft to New York and Chicago in 1933. Both events showed that the Italian military was capable of projecting power across the globe, setting world records in the process. The mostly wood SM.55 proved to be a capable aircraft, incorporating advanced engines and flight instruments.
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