Tether, in collaboration with digital asset platform Fasset, has introduced the world's first gold-backed Visa card, merging the stability of physical gold with the convenience of everyday spending. Cardholders can use fiat currency at any Visa-accepting merchant worldwide and earn up to 6% cashback in XAUt, Tether's gold-backed token, on eligible transactions.
The card's standout feature is its seamless conversion mechanism: XAUt is instantly swapped to USDT and then to fiat for payment without any manual steps. It also includes an automatic round-up function that invests the spare change from each purchase into XAUt, enabling users to accumulate gold holdings passively over time.
Tether has committed up to $1 million worth of XAUt to reward early adopters and build the ecosystem, aiming to drive the adoption of tokenized gold in emerging markets. The broader tokenized gold market has surpassed $53 billion in total market cap, with XAUt accounting for more than $26 billion, underscoring Tether's dominant position in the space. This payment innovation could further bridge the gap between digital gold and everyday consumption.