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.

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"Through this initiative, we are connecting stablecoins and tokenized gold to real-world payment systems, making them usable, accessible, and seamlessly integrated into global transactions, giving users the option to hold gold and invest it however they choose," Tether CEO Paolo Ardoino said.

XAUT is officially offered by TG Commodities Limited, a Tether company. An XAUT token represents one fine troy ounce of gold on a London Good Delivery bar, according to Tether.

Tether Gold holds about 24 tons of gold backing XAUT in its reserves, according to the company's website.