Tether Debuts Tokenized Gold Stablecoin Visa Card That Offers Crypto Rewards

To lead stablecoin Provider Tether is looking to flip the script on the store’s precious gold, making its precious brand a major means of exchange with the new Visa card.

Developed in partnership with digital banking company Fasset, the card allows users to use their Tether Gold (XAUT) balance anywhere Visa is accepted around the world.

“Historically, gold has been a store of value, not a medium of exchange,” said Tether CEO Paolo Adroino, in a statement. “This changes the story.”

When used for transactions, the gold-backed card takes the user’s XAUT and instantly converts it to Tether’s dollar-backed stablecoin USDT, which is converted into fiat currency.

Users can earn up to 6% cashback, paid in real time in XAUT for eligible purchases. In addition to the cashback rewards, a circular feature is used for purchases, which enables users to collect and deposit their exchangeable funds automatically at XAUT.

“Through this process, we are connecting stablecoins and tokenized gold to the real payment systems of the world, making them usable, available, and integrated with global transactions, giving users the opportunity to use gold and invest the money they choose, without conflict or limitations,” said Ardoino.

Each gold-backed XAUT token represents one troy ounce of pure gold that is stored in a Swiss vault and individually assayed. The first one was established Ethereumthe brand has spread to other chains, including the growth of BNB Chain in the month of March. XAUT currently has a market cap of about $2.7 billion.

Gold reached record highs earlier this year, surpassing $5,000 before reaching $5,500 an hour. As of Wednesday, gold and the XAUT symbol were trading at around $4,414, about 20% from its annual increase.

A representative for Tether did not immediately respond Decrypt’s ask for feedback.