Tether and digital banking platform Fasset have launched a new card product that integrates with the Visa network, bringing tokenized gold XAU₮ into everyday spending. According to the introduction, users can earn up to 6% XAU₮ cashback on purchases at eligible merchants, with the rewards going directly to their Fasset wallets.

Get XAU₮ back after purchase

This card can be used at merchants that accept Visa. When a transaction occurs, the system converts XAU₮ to USD₮ in the background, and then converts it to local fiat currency to complete the payment. For users, the front-end usage is similar to that of a regular bank card, and there is no need to directly handle the cryptocurrency conversion process.

In addition to cashback, the product also includes a "spare investment" feature. Each purchase is automatically rounded up, and the difference is used to buy XAU₮. For example, a purchase of $3.60 will automatically transfer the remaining $0.40 into tokenized gold.

Tether stated that it will invest up to $1 million worth of XAU₮ to support the card's rewards program.

Fasset offers fiat currency deposit and withdrawal capabilities.

The product directly integrates with Fasset's existing wallets and settlement infrastructure. The article states that Fasset primarily serves the Asian and African markets and provides the ability to exchange digital assets for local fiat currencies. This crucial step determines whether tokenized gold can truly be used for offline and online payments.

Fasset co-founder and CEO Mohammad Raafi Hossain stated that the platform processes approximately $32 billion annually, with about 95% related to real-world assets. Leveraging its existing distribution network, the card will be prioritized for rollout in emerging markets.

Tether tokenized gold payment scenarios

From a product design perspective, this collaboration targets markets with high currency volatility but strong traditions of using gold as a store of value. While physical gold is widely accepted, liquidity, payment convenience, and low holding thresholds have always been limiting factors. By combining tokenized gold with payment cards, users can passively accumulate gold assets through consumption and complete payments when needed.

The article mentions that the current total market capitalization of tokenized digital gold exceeds $5.3 billion, with XAU₮ accounting for over $2.6 billion, representing a significant share. The launch of this cashback card is also seen as a step by Tether to expand the payment uses and scope of XAU₮.

XAU₮ corresponds to physical gold.

XAU₮ is issued by TG Commodities Limited. Each complete token represents one troy ounce of physical gold allocated to London qualified gold bars and corresponds to a specific bar number, purity, and weight.

The article states that XAU₮ can be redeemed for physical gold or transferred from a Tether wallet to an on-chain address. Compared to gold ETFs or certificates that only exist in the traditional financial account system, this type of tokenized gold has stronger on-chain transfer capabilities.