Tether Launches Tokenized Gold Visa Card With Crypto Rewards

Tether has launched a Visa card backed by its tokenized gold product, XAUT, enabling holders to spend their gold holdings directly at any merchant that accepts Visa and earn crypto rewards on purchases.

The card, announced on Wednesday, allows users to spend their tokenized gold instantly without needing to convert it to fiat first. Tether's XAUT is a digital token representing one troy ounce of gold held in reserve, and the new card effectively turns that gold into a spendable asset. Users will also earn crypto rewards on eligible purchases, though the specific reward token and rate have not been disclosed. This move expands Tether's ecosystem beyond stablecoins into real-world asset-backed spending products.

For cryptocurrency and digital asset traders, this development signals growing convergence between tokenized real-world assets and everyday payments. Tokenized gold has historically been used primarily as a store of value or collateral, but the Visa card gives it utility as a medium of exchange. This could increase demand for XAUT and similar tokenized commodities, as holders now have a practical reason to keep their gold on-chain rather than in traditional vaults. Traders can monitor real-time XAUT prices and trading volumes on NowPrice to gauge market reaction.

Looking ahead, the success of this product will depend on adoption by merchants and users, as well as the competitive landscape. Other stablecoin issuers and tokenized asset platforms may follow suit with similar card products. Regulatory clarity around tokenized assets and their use in payments will also be a key factor to watch.