Tether announced on Wednesday that it will soon launch a Visa card that will allow users to receive rewards in XAUT – a gold-backed stablecoin.
According to the project, the card will run on the Visa network, meaning users can spend fiat currency at Visa-accepting locations worldwide, while also receiving up to 6% cashback in XAUT on eligible transactions. Tether describes this as a “rewards layer” tied to the gold asset the company is Tokenize.
To issue the card, Tether partnered with fintech company Fasset – a major provider of off-ramp services for converting digital assets into cash in Asia and Africa. The company also stated that Fasset raised $22 million in Series A Capital in 2022.
In addition to cashback, Tether says the card features automatic rounding of odd amounts in each transaction, then uses that amount to buy XAUT. XAUT currently has a market Capital of approximately $2.6 billion. The card can also exchange USDT for fiat currency for payment purposes.
CEO Paolo Ardoino stated that the goal is to connect stablecoins and Tokenize gold with real-world payment systems, allowing users to easily integrate them into global transactions, while also providing them with more options for holding and investing in gold as they wish.
XAUT is issued by TG Commodities Limited (a subsidiary of Tether). According to Tether , each XAUT Token represents 1 ounce of troy gold on the London Good Delivery standard. Tether also states that the reserves backing XAUT currently amount to approximately 24 tons of gold.
The article "Tether plans to launch a 'gold Tokenize' Visa card" first appeared on CoinMoi .
