Made in collaboration with digital banking firm Fasset, the card will allow users to spend their Tether Gold (XAUT) holdings anywhere Visa is accepted worldwide.
“Historically, gold has been a store of value, not a medium of exchange,” said Tether CEO Paolo Adroino, in a statement. “This initiative changes that narrative.”
When used at the point-of-sale, the gold-backed card takes users’ XAUT and instantly converts it to Tether’s dollar-backed stablecoin USDT, which is ultimately converted to fiat currency.
Unlocking real-world utility through the Fasset Card.
Spenders can earn up to 6% cashback, paid in real-time in XAUT on eligible purchases. In addition to the cashback rewards, a round-up feature is applied to purchases, enabling users to round up and invest their spare change back into XAUT automatically.
“Through this initiative, we are connecting stablecoins and tokenized gold to real-world payment systems, making them usable, accessible, and seamlessly integrated into global transactions, giving users the option to hold gold and invest it however they choose, without friction or borders,” said Ardoino.
Gold reached a new all-time high price earlier this year, eclipsing $5,000 before ultimately reaching above $5,500 per ounce. As it stands on Wednesday, an ounce of gold and the XAUT token were trading around $4,414, about 20% off its yearly high.
A representative for Tether did not immediately respond to Decrypt’s request for comment.
