Bybit, one of the world’s largest crypto exchanges by trading volume, has launched options trading for Tether Gold (XAUT), a token backed by physical gold.
The new XAUT options are settled in USDT and allow traders to hedge risk, speculate on gold price movements, trade volatility, and implement customized strategies through Bybit’s Request for Quote (RFQ) system for OTC execution.
To support liquidity at launch, Bybit has partnered with crypto options market maker Orbit Markets. The firm brings extensive derivatives experience, including professionals with backgrounds in traditional finance such as former senior executives from Deutsche Bank’s precious metals and currency desks.
“As tokenization accelerates, we believe the boundary between crypto and traditional finance will continue to narrow,” said Jimmy Yang, co-founder of Orbit Markets. He noted that gold options are a core part of traditional derivatives markets and highlighted growing demand for similar instruments within crypto.
The XAUT options are European-style contracts settled in USDT, with each contract representing one XAUT token, which is backed by one troy ounce of physical gold.
What are options?
Options are derivative contracts that give buyers the right, but not the obligation, to buy or sell an underlying asset at a set price within a specific time period. A call option allows the holder to buy, while a put option allows the holder to sell.
In simple terms, options act like paying a premium to lock in a future price. If the market moves favorably, the trader benefits; if not, they can let the contract expire and only lose the premium. They are commonly used to hedge risk or speculate on volatility.
Market size
The global gold options market is a multi-billion-dollar industry dominated by exchanges such as CME and India’s MCX, with a large share of trading also occurring over the counter.
Bybit’s move brings this established asset class on-chain for the first time on a major crypto platform.
Although XAUT options have been available on smaller venues like CoinCall since November 2024, Bybit’s listing marks the first time a top-tier exchange has offered them with institutional-grade liquidity support.
