TLDR
- Bybit has launched dedicated options trading for Tether Gold (XAUT) through its RFQ platform.
- Each XAUT options contract represents one XAUT token backed by one troy ounce of physical gold.
- The contracts are European-style options and settle in USDT.
- Traders can use the new product to hedge risk, trade volatility, or build custom options strategies.
- Orbit Markets is providing liquidity support for the launch on Bybit.
Bybit has launched options trading for Tether Gold (XAUT), expanding access to tokenized gold derivatives. The new product allows traders to hedge positions, trade volatility, and build options strategies. Bybit introduced the contracts through its RFQ platform and partnered with Orbit Markets to support liquidity.
Tether Gold Options Begin Trading on Bybit
The exchange activated XAUT options for users seeking exposure to tokenized gold derivatives. Each contract represents one XAUT token, which tracks one troy ounce of physical gold. The contracts use a European-style structure and settle in USDT.
Bybit integrated the product into its Request for Quote system for over-the-counter transactions. Traders can negotiate pricing directly through the platform. The setup supports hedging activities and volatility-based trading strategies.
Orbit Markets joined the launch as the primary liquidity provider. The firm specializes in crypto derivatives and options markets. Its team includes former precious metals trading executives from global financial institutions.
“As tokenization accelerates, we believe the distinction between crypto and TradFi will continue to narrow,” said Jimmy Yang.
He added that gold options remain a core product in traditional derivatives markets. Yang also said interest in traditional financial derivatives continues to grow within crypto markets.
Tether Gold Contracts Mirror Traditional Gold Derivatives
The new contracts give buyers the right to buy or sell XAUT at predetermined prices. However, holders are not obligated to execute the trade. Traders can choose between call options and put options.
A call option grants the right to buy the underlying asset before expiration. In contrast, a put option grants the right to sell it. Traders often use these instruments to manage market exposure.
Options buyers pay a premium to secure those rights. If prices move favorably, traders can exercise the contract. If prices move unfavorably, they can allow the contract to expire.
The structure follows standard practices used in established derivatives markets. Gold options already generate substantial trading activity worldwide. Exchanges and OTC desks handle much of that volume across traditional markets.
Bybit Expands Access to Tokenized Gold Trading
Bybit stated that the launch brings gold options to a major cryptocurrency exchange. The company offers the contracts through infrastructure designed for institutional and professional traders. Liquidity support remains available through Orbit Markets from launch.
Smaller crypto platforms introduced XAUT options before this launch. CoinCall began offering the contracts in November 2024. However, Bybit now provides the product on one of the largest crypto trading venues.
The exchange ranks among the world’s leading cryptocurrency platforms by trading volume. The launch adds another derivatives product tied to tokenized real-world assets. Users can now access dedicated options trading linked directly to Tether Gold.
Each XAUT token represents ownership of one troy ounce of physical gold. The token serves as the underlying asset for every options contract. Bybit’s new market is now live on its trading platform.
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