A New Era for Tokenized Gold
The newly launched debit card runs on the global Visa network, allowing users to spend their funds at millions of merchants worldwide. However, the real innovation lies in its reward structure. Instead of traditional points or fiat cashback, cardholders earn up to 6% cashback paid directly in XAUt (Tether Gold). Each token of Tether Gold is backed by one troy fine ounce of physical gold secured in a Swiss vault.
Key Metrics of the Launch
- Rewards Pool: Tether has committed $1,000,000 in XAUt to seed the ecosystem.
- Cashback Rate: Up to 6% on eligible transactions.
- Market Dominance: XAUt accounts for over $2.6 billion of the $5.3 billion tokenized gold market.
How the Gold-Backed Visa Card Works
The card bridges the gap between daily spending and wealth preservation. When a user makes a purchase, the system can automatically round up the transaction to the nearest dollar, sweeping the spare change directly into fractional XAUt. At the point of sale, users can seamlessly convert their digital gold holdings back into USDT and then into local fiat currency within seconds.
“Historically, gold has been a store of value, not a medium of exchange. This initiative changes that narrative. We are connecting stablecoins and tokenized gold to real-world payment systems, making them usable, accessible, and seamlessly integrated into global transactions.”
— Paolo Ardoino, CEO of Tether
Targeting Emerging Markets
Fasset, which boasts an annualized transaction volume of $32 billion, is focusing heavily on emerging markets across Asia and Africa. In these regions, high inflation and local currency volatility drive demand for stable, asset-backed alternatives like gold.
“For over a thousand years, gold has been the most trusted store of wealth across our markets. We’re bringing it into the digital age. Fasset is building the infrastructure to make Tether Gold the most widely held digital gold token in emerging markets.”
— Mohammad Raafi Hossain, CEO and Co-founder of Fasset
The card integrates directly with Fasset’s neobanking wallet infrastructure, which offers multi-currency accounts, instant settlements, and interest-free investment options across commodities and equities.
FAQ
What is the gold-backed Visa card?
It is a neobanking debit card launched by Tether and Fasset that allows users to spend fiat or crypto while earning cashback and saving spare change in tokenized gold (XAUt).
How does the cashback mechanism work?
Users receive up to 6% cashback on eligible purchases. The rewards are automatically distributed in XAUt directly to the user’s Fasset wallet without manual claims.
Is Tether Gold backed by real gold?
Yes, each XAUt token represents ownership of one troy fine ounce of physical gold on a London Good Delivery bar, securely vaulted in Switzerland.
