- Bybit has launched trading in Tether Gold (XAUT) options backed by physical gold, offering tools for gold volatility trading and hedging.
- The XAUT options use a European-style option structure, with contracts sized at 1 XAUT and settled in Tether (USDT).
- CoinDesk said Bybit’s entry marks the first case of a major exchange with institutional-grade liquidity offering the product, potentially expanding the intersection of real-world asset tokenization and crypto derivatives markets.
Forecast Trend Report by Period
Crypto exchange Bybit has launched options trading for Tether Gold (XAUT), opening an options market for a tokenized asset backed by physical gold. The move expands tools for hedging and volatility trading linked to gold prices in crypto markets.
Bybit started offering Tether Gold options, crypto-focused media outlet CoinDesk reported on June 16. Tether Gold is a token representing ownership of physical gold, with 1 XAUT tied to 1 troy ounce of the metal.
The new XAUT options allow traders to bet on swings in gold prices, hedge price risk and build volatility strategies. Bybit also offers a request-for-quote, or RFQ, system for over-the-counter trading.
Bybit partnered with crypto options market maker Orbit Markets to provide liquidity for the product. Orbit Markets employs derivatives specialists, including personnel with experience on precious-metals trading desks.
“As tokenization accelerates, the line between crypto and traditional finance will continue to narrow,” Orbit Markets co-founder Jimmy Yang said. Gold options are one of the core products in traditional derivatives markets, he added, and interest in traditional finance derivatives is also rising in crypto markets.
The XAUT options use a European-style structure and are settled in Tether’s dollar-pegged stablecoin USDT. Each options contract corresponds to 1 XAUT.
Options are derivatives that give holders the right to buy or sell an asset at a predetermined price. A call option gives the right to buy the underlying asset, while a put option gives the right to sell it. Investors can use options to bet on price direction or limit downside risk on existing holdings.
The global gold options market is centered on venues including CME Group and India’s Multi Commodity Exchange, or MCX, while over-the-counter trading accounts for a large share of the market. CoinDesk said Bybit’s launch brings traditional gold derivatives to a major crypto trading platform.
XAUT options were previously available on smaller platforms such as Coincall. CoinDesk said Bybit’s entry is significant because it marks the first offering by a major exchange backed by institutional-grade liquidity support.
The launch of Tether Gold options could broaden the overlap between real-world asset tokenization and crypto derivatives markets. It may provide a new trading tool for investors seeking exposure to gold volatility as well as crypto users who prefer stablecoin-based settlement.
