Popular digital assets company Tether announced the launch of a gold-backed neobanking Visa card in collaboration with the digital banking and investment platform Fasset on June 3. Tether sai
Popular digital assets company Tether announced the launch of a gold-backed neobanking Visa card in collaboration with the digital banking and investment platform Fasset on June 3.
Tether said the card allows users to earn 6% cashback in the form of its XAUT stablecoin.
Related: New report reveals gold has overtaken U.S. Treasuries
Tether is best known for its stablecoin offerings such as XAUT and USDT, which are cryptocurrencies that keep their value stable, unlike volatile digital assets like Bitcoin (BTC).
One XAUT token represents one troy fine ounce of gold on a London Good Delivery bar. It is available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain.
The allocated gold is identifiable with a unique serial number, purity, and weight and is redeemable in the form of physical gold.
One USDT token holds the same value as one U.S. dollar. All USDT tokens are backed 100% by reserves, as per Tether.
The card will operate on the Visa network and let users spend fiat at merchant stores where Visa cards are accepted, Tether said.
Users can convert XAUT to USDT and then to fiat currency at the point of transaction and earn up to 6% cashback in XAUT on eligible transactions, Tether revealed.
The card will also feature an automatic round-up function that auto-invests the spare change from every transaction in XAUT, the company said.
"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," Tether CEO Paolo Ardoino said.
With the gold-backed Visa card, Tether is attempting to create a reward layer around its gold-backed assets.
The card will be integrated directly with Fasset’s wallet infrastructure, with XAUT cashback flowing into users’ wallets in real time. Fasset's off-ramp service would ensure that the USDT-to-fiat conversion layer is optimized for speed and reliability, as per the statement.
