Key Takeaways:
Tether is pushing tokenized gold into everyday spending with a Visa card that rewards users in XAUT.
Tether partnered with Fasset to issue a Visa card that lets users spend Tether Gold (XAU₮) at merchants worldwide while earning up to 6% cashback in the tokenized gold asset.
"Gold has historically served as a store of value rather than a medium of exchange," Paolo Ardoino, chief executive officer of Tether, said. "This effort is intended to change that perception."
The card converts XAU₮ into USD₮ and then into local fiat at the point of sale, integrating the conversion directly into the payment flow. Tether is allocating as much as $1 million in XAU₮ to fund the rewards ecosystem. The card also includes an automatic round-up feature that invests spare change from each purchase into Tether Gold, with rewards deposited into users' Fasset wallets in real time.
The tokenized gold market now exceeds $5.3 billion, with XAU₮ accounting for more than $2.6 billion of that total, according to Tether. The card targets users in Asia and Africa, where Fasset operates its digital banking platform, offering a gold-linked alternative in markets where currency volatility remains a concern. Each XAU₮ token represents one troy fine ounce of gold held on a London Good Delivery bar, with holders able to redeem tokens for physical gold.
How the card works
Behind the scenes, each transaction follows a three-step conversion: XAU₮ is swapped to USD₮, then converted to fiat currency at the payment terminal. This structure lets users maintain exposure to gold-backed assets while spending through Visa's global merchant network. Fasset provides the wallet infrastructure, payment rails and conversion services, and its platform offers multi-currency accounts, instant settlement and access to cryptocurrencies, stocks and commodities.
Why it matters for tokenized gold
The launch marks a shift for Tether Gold, which has been used primarily as a store of value and trading instrument since its introduction. By linking spending activity to a gold-backed digital asset, Tether and Fasset aim to create a savings and payment tool that combines accessibility with long-term value preservation. The $1 million XAU₮ commitment is designed to drive adoption through the cashback mechanism, turning gold from a passive holding into an asset that participates in daily transactions.
This article is for informational purposes only and does not constitute investment advice.
