Bybit, one of the world’s largest cryptocurrency exchanges by trading volume, has introduced options trading for Tether Gold (XAUT), a token backed by physical gold.
The new XAUT options are settled in USDT and give traders the ability to hedge risk, speculate on gold price movements, trade volatility, and build tailored strategies using Bybit’s Request for Quote (RFQ) system for OTC execution.
To ensure liquidity from launch, Bybit has partnered with crypto options market maker Orbit Markets. The firm brings deep derivatives expertise, including professionals with traditional finance backgrounds such as former senior executives from Deutsche Bank’s precious metals and FX trading desks.
“As tokenization accelerates, we expect the gap between crypto and traditional finance to continue narrowing,” said Jimmy Yang, co-founder of Orbit Markets. He added that gold options remain a core component of traditional derivatives markets and noted rising demand for similar products within crypto.
The XAUT options are European-style contracts settled in USDT, with each contract linked to one XAUT token, which represents one troy ounce of physical gold.
What are options?
Options are derivative contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a set timeframe. A call option gives the right to buy, while a put option gives the right to sell.
In simple terms, options work like paying a fee to lock in a future price. If the market moves in your favor, you benefit from the agreed price; if not, you can let the contract expire and only lose the premium. They are widely used for hedging risk or expressing views on volatility.
Market size
The global gold options market is a multi-billion-dollar industry led by exchanges such as CME and India’s MCX, with a significant share of trading also taking place over the counter.
With this launch, Bybit brings a traditional derivatives asset class on-chain on a major crypto trading platform for the first time.
While XAUT options have previously been offered on smaller platforms such as CoinCall since November 2024, Bybit’s entry marks the first time a top-tier exchange has provided them with institutional-grade liquidity support.
