Tether, Fasset launch Visa card with 6% XAUT cashback

Tether and digital banking firm Fasset have launched a Visa card that spends Tether Gold (XAUT) and pays up to 6% cashback in XAUT on eligible purchases.

At checkout the card converts a holder’s XAUT into Tether’s dollar-backed stablecoin USDT, which is then converted into the merchant’s local fiat currency for settlement.

Cardholders can receive real-time cashback of as much as 6% on qualifying transactions, with rewards returned to their accounts in XAUT.

The card offers an optional round-up feature that converts spare change from purchases into additional XAUT, letting users accumulate tokenized gold through small, automated contributions.

Fasset provides the digital banking and card infrastructure. The card can be used wherever Visa is accepted.

Paolo Ardoino, Tether’s chief executive, stated: “Historically, gold has been a store of value, not a medium of exchange.”

Each XAUT token represents one fine troy ounce of physical gold held in Swiss vaults and subject to independent audits. XAUT launched on Ethereum and has expanded to other blockchains, including BNB Chain. The token’s market capitalization is around $2.7 billion.

Gold reached intrayear highs earlier in the year, briefly topping $5,000 and later exceeding $5,500 per ounce. At recent levels an ounce of gold and the XAUT token were trading near $4,414, roughly 20% below the yearly peak.

Tether and Fasset did not disclose specific rollout regions or consumer fees in their initial announcement.