Tether announced the launch of a gold-backed stablecoin Visa card in collaboration with digital banking firm Fasset. The card allows users to spend their Tether Gold (XAUT) holdings anywhere Visa is accepted worldwide, with the system instantly converting XAUT to Tether's dollar-backed stablecoin USDT and then to fiat currency at the point of sale. Tether CEO Paolo Ardoino stated the initiative aims to transform gold from a store of value into a medium of exchange, connecting tokenized gold to real-world payment systems.
Tether Card Converts XAUT to Fiat via USDT
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. Ardoino stated, "Historically, gold has been a store of value, not a medium of exchange. This initiative changes that narrative." The card enables users to hold gold and invest it without friction or borders, according to Ardoino's statement.
Cardholders Earn Up to 6% Cashback in XAUT
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. Fasset announced the partnership on June 3, 2026, stating the card delivers USDT and tokenized real-world assets in global markets where no bank or traditional brokers can operate.
XAUT Token Represents Physical Gold Held in Swiss Vaults
Each XAUT gold-backed stablecoin token represents one fine troy ounce of physical gold that is held in Swiss vaults and independently audited. First launched on Ethereum, the token has branched out to other chains, including expanding to BNB Chain in March. XAUT currently has a market cap of around $2.7 billion. Gold reached a new all-time high price earlier this year, eclipsing $5,000 before ultimately reaching above $5,500 per ounce. On Wednesday, an ounce of gold and the XAUT token were trading around $4,414, about 20% off its yearly high.
FAQ
What is the Tether gold-backed Visa card?
Tether launched a gold-backed stablecoin Visa card in collaboration with Fasset that allows users to spend their Tether Gold (XAUT) holdings anywhere Visa is accepted worldwide, with instant conversion to USDT and then fiat currency at the point of sale.
How much cashback do cardholders earn?
Cardholders can earn up to 6% cashback, paid in real-time in XAUT on eligible purchases. A round-up feature also enables users to automatically invest their spare change back into XAUT.
What does each XAUT token represent?
Each XAUT gold-backed stablecoin token represents one fine troy ounce of physical gold held in Swiss vaults and independently audited. XAUT currently has a market cap of around $2.7 billion.
