Tether announced Wednesday the launch of a Visa card that allows users to earn rewards in its gold-backed stablecoin XAUT. The card, developed in partnership with fintech Fasset, operates on the Visa network and enables consumers to spend fiat at merchant stores worldwide while earning up to 6% cashback in XAUT on eligible transactions. The initiative aims to connect stablecoins and tokenized gold to real-world payment systems, according to Tether CEO Paolo Ardoino. Tether is the world's largest stablecoin issuer with its U.S. dollar-pegged USDT.
Tether Visa Card Offers XAUT Rewards and Spare Change Investment
The card will operate on the Visa network, enabling users to spend fiat at merchant stores worldwide where Visa cards are accepted while earning up to 6% cashback in XAUT on eligible transactions, creating a reward layer tied to Tether's gold-backed assets, according to a statement from Tether. Along with the ability to earn rewards on purchases, the card will automatically round up spare change from every transaction and then invest the fiat into XAUT, the gold-backed stablecoin with a market cap of roughly $2.6 billion. The card can also convert USDT to fiat for purchases, according to the announcement.
Fasset Partners with Tether for Card Issuance
To issue the card, Tether has teamed up with the fintech Fasset. The company is one of the largest digital asset off-ramp providers across Asia and Africa, the statement said. In 2022, Fasset raised $22 million in Series A funding. "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, giving users the option to hold gold and invest it however they choose," Tether CEO Paolo Ardoino said.
XAUT Represents One Fine Troy Ounce of Gold
XAUT is officially offered by TG Commodities Limited, a Tether company. An XAUT token represents one fine troy ounce of gold on a London Good Delivery bar, according to Tether. Tether Gold holds about 24 tons of gold backing XAUT in its reserves, according to the company's website.
FAQ
What rewards does the Tether Visa card offer?
The Tether Visa card allows users to earn up to 6% cashback in XAUT on eligible transactions. The card also automatically rounds up spare change from every transaction and invests the fiat into XAUT.
Who is partnering with Tether to issue the card?
Tether has partnered with fintech Fasset to issue the card. Fasset is one of the largest digital asset off-ramp providers across Asia and Africa and raised $22 million in Series A funding in 2022.
