Key Takeaways
- Stablecoin giant Tether has partnered with digital banking firm Fasset to launch a new Visa debit card.
- The card enables users to spend Tether Gold (XAUT) at millions of merchants worldwide.
- Cardholders can earn up to 6% cashback paid directly in tokenized gold.
Leading stablecoin issuer Tether is looking to flip the script on gold’s traditional store-of-value framing. By turning its tokenized commodity into a liquid medium of exchange, a new partnership is bringing physical gold directly to the checkout counter.
Developed in collaboration with digital banking platform Fasset, the new Visa card allows users to seamlessly spend their XAUT holdings anywhere Visa is accepted globally.
“Historically, gold has been a store of value, not a medium of exchange,” said Tether CEO Paolo Ardoino. “This initiative changes that narrative.”
How the Gold-to-Fiat Conversion Works
When a user swipes or taps the card at a point-of-sale terminal, the backend infrastructure instantly converts the user’s XAUT balance into Tether’s flagship dollar-pegged stablecoin, USDT. From there, the funds are converted into local fiat currency to settle the transaction with the merchant.
To incentivize adoption, the card features a lucrative rewards program. Spenders can earn up to 6% cashback, distributed in real-time as XAUT on eligible purchases. Additionally, a built-in round-up feature allows users to automatically save and reinvest their spare change back into tokenized gold.
Tether Gold (XAUT) Market Overview
- Current Market Capitalization: $2.7 billion.
- Backing: One fine troy ounce of physical gold per token, secured in Swiss vaults.
- Blockchain Compatibility: Ethereum and BNB Chain.
“Through this initiative, we are connecting stablecoins and tokenized gold to real-world payment systems, making them usable, accessible, and seamlessly integrated into global transactions,” Ardoino added.
Frequently Asked Questions (FAQ)
What is Tether Gold (XAUT)?
Tether Gold is a digital asset that represents ownership of physical gold. Each token is backed by one fine troy ounce of physical gold held in secure Swiss vaults and subject to independent audits.
How does the cashback reward system work?
Users receive up to 6% cashback on eligible purchases. Unlike traditional cards that pay rewards in fiat or points, this card pays out rewards in real-time using XAUT tokens.
Can I use this card internationally?
Yes, because the card is powered by the Visa network, it can be used at millions of merchants and ATMs worldwide where Visa is accepted.
