Tether has announced the launch of a Visa payment card tied to its tokenized gold asset, XAUT. The project is being launched in partnership with Fasset, a digital banking platform operating across Asia and Africa. Cardholders will be able to pay at merchants worldwide wherever Visa is accepted while earning rewards in the form of XAUT.
“This is the world’s first gold card of its kind,” Tether said.
How the Card Works
Payments are settled in fiat currency. At the time of purchase, XAUT is converted into USDT and then into the local currency. Users can earn up to 6% cashback in XAUT on purchases, with rewards credited to their wallets in real time.
The card also includes a round-up feature. The system automatically collects spare change from each transaction and uses it to purchase additional XAUT, helping users gradually accumulate tokenized gold over time.
Market Figures in the Tokenized Gold Sector
The tokenized gold market has a capitalization of more than $5.3B, with XAUT accounting for over $2.6B of that total. To support the card’s launch, Tether is allocating up to $1.0M in XAUT to fund the rewards program.
Tether CEO Paolo Ardoino said that gold has historically served as a store of value rather than a means of payment, and that this initiative aims to change that by connecting stablecoins and tokenized gold with real-world payment networks.
Mohammad Raafi Hossain, CEO and co-founder of Fasset, said the platform generates $32.0B in annual transaction volume, with 95% tied to real-world assets. He added that the company aims to make Tether Gold the most widely used digital gold token across emerging markets.
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