Tether has rolled out a Visa-branded payment card that pays up to 6% cashback in its gold-backed stablecoin, XAUT, aiming to move tokenized commodities into everyday spending through established payment rails.
Under the program, cardholders can earn XAUT rewards on selected transactions and spend both their rewards and card balances anywhere Visa is accepted worldwide. The card converts XAUT and USDT into local currencies at the point of sale, removing the need for users to manually off-ramp digital assets before making purchases.
Partnership with Fasset targets Asia and Africa
The launch is being carried out with fintech firm Fasset, which focuses on digital-asset off-ramping in Asia and Africa. Fasset, which raised $22 million in a Series A round in 2022, is providing the infrastructure to convert digital assets into local fiat currencies during card transactions.
The card includes an automatic “round-up” feature that takes spare change from each purchase and uses it to buy additional XAUT. Tether positions this as a way for cardholders to passively accumulate exposure to gold while using the card for routine expenses.
How XAUT is backed and structured
Tether says each XAUT token corresponds to one fine troy ounce of gold held on a London Good Delivery bar. The company reports that roughly 24 tons of physical gold back the circulating supply, giving XAUT a market capitalization of about $2.6 billion.
XAUT is issued by TG Commodities Limited, an entity associated with Tether. The company presents the card as part of a broader push to integrate tokenized real-world assets into mainstream payment networks rather than limiting them to trading platforms.
Tokenized gold and real-world assets gain traction
The rollout comes as the tokenized gold segment grows. The market value of gold-backed tokens has moved above $5.3 billion, while the broader tokenized real-world asset market reached nearly $31 billion as of May 2026.
XAUT itself has expanded rapidly, with its market capitalization climbing above $3.3 billion in the first quarter of 2026, a 36% increase over that period, according to Tether. The firm also notes that reserves for XAUT are now held in Swiss vaults, with each token still representing one troy ounce of gold.
Rewards tied to gold price volatility
The XAUT cashback structure exposes cardholders to moves in the gold price instead of traditional fixed-value reward points. Gold has seen notable volatility, rising above $5,500 per troy ounce before retreating to around $4,500 in the first quarter of 2026.
That dynamic could be particularly closely watched in emerging markets, where Fasset has a strong footprint and where local currency instability can increase demand for assets perceived as stores of value.
Visa deepens role in stablecoin-linked cards
The Tether–Fasset card adds to a growing roster of crypto-linked payment products on Visa’s network. Visa now supports more than 130 stablecoin-linked card programs and plans to extend these offerings to over 100 countries by the end of this year.
Monthly spending on crypto-linked cards has risen to about $600 million, with Visa handling the bulk of related on-chain settlement. The new XAUT rewards card is positioned as another step in turning digital assets from a purely speculative tool into a means of funding daily expenses.
Key features at a glance
- Up to 6% cashback in XAUT on selected transactions, spendable wherever Visa is accepted
- Real-time conversion of XAUT and USDT to local fiat at the point of sale
- Automatic round-up of transaction leftovers into additional XAUT
- XAUT backed by physical gold bars, with reserves of about 24 tons and a market cap near $2.6 billion
Curious about tokenized gold and stablecoins? Explore how PAX Gold bridges physical bullion with Web3 for deeper insight.
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