Tether is turning tokenized gold into a spendable asset with a new Visa card that lets users pay with its gold-backed stablecoin, Tether Gold (XAUT).
Launched in partnership with digital banking firm Fasset, the card enables holders to use XAUT anywhere Visa is accepted. At checkout, the card automatically converts XAUT into Tether’s dollar stablecoin USDT, which is then settled into fiat — effectively making tokenized gold usable for everyday payments.
“Historically, gold has been a store of value, not a medium of exchange,” Tether CEO Paolo Ardoino said. “This initiative changes that narrative.” Fasset framed the product as a way to deliver USDT and tokenized real-world assets (RWAs) into markets where traditional banks or brokers cannot operate.
The card also includes consumer-friendly features: up to 6% cashback on eligible purchases paid in real time in XAUT, plus a round-up option that invests spare change back into XAUT automatically. That combination aims to make holding and accumulating tokenized gold easier and more practical for everyday users.
Each XAUT token represents one fine troy ounce of physical gold stored in Swiss vaults and subject to independent audits. The token launched on Ethereum and has since expanded to other chains, including a March rollout on BNB Chain. XAUT’s market cap is roughly $2.7 billion.
Gold prices hit new highs earlier this year — briefly topping $5,000 and pushing above $5,500 per ounce — though both physical gold and XAUT have pulled back. As of this week, an ounce of gold and the XAUT token were trading around $4,414, roughly 20% below their yearly peak.
A Tether representative did not immediately respond to Decrypt’s request for comment.
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