No More Conversion: El Salvador's USDT Card Spends Crypto Directly

El Salvador is set to become the first country to launch a self-custody USDT Visa card, a development that underscores the growing integration of stablecoins into mainstream financial systems. Crypto payments firm Truther, in partnership with Visa, will debut the card on January 29, 2025, allowing users to spend tether (USDT) directly from their self-custody wallets without preloading funds or relying on custodial services according to a report. This innovation, unveiled at the Blockchain Conference Brasil, addresses a key pain point for crypto users: the need to convert stablecoins to fiat or hold balances on centralized platforms. Instead, the card deducts USDT in real time during transactions, with a 2% fee on currency conversions and no IOF tax for Brazilian users.

The card's non-custodial model preserves user control over funds, a stark contrast to traditional crypto cards that often require preloaded balances. Truther's solution operates on the Polygon blockchain and plans to migrate to the Liquid network for enhanced privacy. This approach aligns with Visa's broader strategy to modernize cross-border payments. Earlier in 2025, Visa expanded its stablecoin settlement infrastructure across the CEMEA region via a partnership with Aquanow, enabling faster, lower-cost transactions using USDC and other stablecoins according to Nasdaq reporting. Such moves reflect a broader industry shift toward leveraging blockchain to streamline global money movement.

The card's design also highlights the potential for stablecoins to bridge gaps in traditional financial infrastructure. By enabling real-time settlements and supporting QR code-based transactions, Truther's product caters to markets with 24/7 payment systems. Visa's partnership with Aquanow further illustrates the network's commitment to reducing operational friction in cross-border flows. Monthly stablecoin settlement volume via Visa's infrastructure has surged to an annualized $2.5 billion, signaling strong demand for faster, cheaper alternatives to legacy systems.

El Salvador's adoption of the USDT Visa card is particularly significant given the country's status as the first to adopt bitcoin as legal tender in 2021. The launch provides a test bed for broader stablecoin adoption across Latin America, a region where high inflation and underbanked populations create demand for alternative financial tools. Truther plans to expand services to Argentina, Mexico, Colombia, and Russia, integrating local stablecoins like tether gold and peso-pegged tokens by early 2025. The company's Swapix API, which facilitates instant crypto-to-fiat conversions, is already processing $40 million in daily volume by connecting stablecoins to Brazil's PIX instant payment system according to CoinDesk reporting.

Analysts view the USDT Visa card as a strategic move to attract fintechs, neobanks, and traditional institutions seeking cost-effective solutions. As stablecoin adoption grows, Visa's role as a global settlement hub could translate into increased transaction volume and recurring fees. Meanwhile, competitors like Mastercard and American Express are also advancing their stablecoin strategies, with Mastercard launching tools for USDG transactions and AmEx exploring blockchain-linked rewards programs.

For Truther, the card's launch represents a milestone in expanding crypto's utility beyond speculative trading. Founder Rocelo Lopes emphasized that the product empowers users to spend crypto seamlessly, whether paying for a hotel stay or everyday purchases. "You don't charge the card beforehand," he explained, noting that the system deducts funds in real time (according to CoinDesk reporting). This approach aligns with broader trends in decentralized finance, where self-custody and privacy are prioritized.

As the market evolves, challenges remain, including regulatory compliance and competition from emerging payment solutions. However, the USDT Visa card's focus on user control and efficiency positions it as a compelling option for crypto users and traditional financial institutions alike. With stablecoin transaction volumes projected to triple in the next 12 months, the partnership between Truther and Visa could set a precedent for how digital assets are integrated into global commerce.