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Tether has launched a gold-backed Visa neobanking card with Fasset, giving users a way to spend through Visa merchants while earning rewards in Tether Gold, or XAU₮.
The card runs on Visa’s payment network and uses Fasset’s wallet infrastructure. Tether said users can convert XAU₮ to USD₮ and then into fiat at the point of sale.
Card Users Can Earn Up to 6% in XAU₮
Eligible card transactions will earn up to 6% cashback in XAU₮. Tether said rewards will be added to users’ wallets in real time. That gives cardholders a gold-backed reward layer for regular spending through Visa merchants.
The card will also include an automatic round-up feature. Spare change from purchases can be used to buy XAU₮, giving users a way to build small gold positions through repeated transactions.
Fasset Handles XAU₮ to Fiat Conversion
Fasset will provide the neobanking and wallet rails behind the card. The platform offers multi-currency accounts, transfers, settlement, debit-card access and investment products across crypto, stocks, funds and commodities.
The payment flow depends on conversion. Users can hold gold-backed tokens, move through USD₮ and spend in fiat where Visa cards are accepted. That setup lets the card work at normal merchants without requiring them to accept tokenized gold directly.
Tether Commits $1M in XAU₮ Rewards
Tether said it will commit up to $1 million in XAU₮ to support the card’s rewards ecosystem. The company said the funding is meant to bring tokenized gold into more real-world payment use.
XAU₮ represents one troy fine ounce of gold on a London Good Delivery bar. Tether said the allocated gold is identifiable by serial number, purity and weight, and can be redeemed as physical gold under the product’s terms.
XAU₮ Accounts for $2.6B of Gold-Token Market
Tether said the tokenized digital gold market is worth more than $5.3 billion, with XAU₮ accounting for more than $2.6 billion. In January, XAU₮ accounted for about 60% of the global gold-backed stablecoin market.
The new card gives XAU₮ a consumer payments use case through Visa merchants, cashback rewards and round-up purchases. Users can earn XAU₮ rewards, convert XAU₮ through USD₮ and spend in fiat through Visa’s network.
