Tether is launching a Visa card that allows consumers to earn rewards paid in its gold-backed stablecoin XAUT, the company said Wednesday.
"The card will operate on the Visa network, enabling users to spend fiat at merchant stores worldwide where Visa cards are accepted while earning up to 6% cashback in XAUT on eligible transactions, creating a reward layer tied to Tether’s gold-backed assets," according to a statement.
To issue the card, Tether, the world's largest stablecoin issuer with its U.S. dollar-pegged USDT, has teamed up with the fintech Fasset. The company is one of the largest "digital asset off-ramp providers" across Asia and Africa, the statement said. In 2022, Fasset raised $22 million in Series A funding.
Along with the ability to earn rewards on purchases, Tether said the card will automatically round up spare change from every transaction and then invest the fiat into XAUT, the gold-backed stablecoin with a market cap of roughly $2.6 billion.
The card can also convert USDT to fiat for purchases, according to the announcement.
