Bybit Launches Dedicated Options Market for Tether Gold (XAUT)

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 ownership.

These newly launched XAUT options are settled in USDT and allow traders to hedge exposure, speculate on gold price movements, trade volatility, and design customized strategies using Bybit’s Request for Quote (RFQ) system for over-the-counter (OTC) execution.

To support liquidity from launch, Bybit has partnered with crypto options market maker Orbit Markets. The firm brings deep experience in derivatives trading, including professionals with backgrounds in traditional finance, such as former senior leadership from Deutsche Bank’s precious metals and FX desks.

“As tokenization accelerates, we believe the gap between crypto and traditional finance will continue to shrink,” said Jimmy Yang, co-founder of Orbit Markets. He added that gold options remain a key pillar of traditional derivatives markets and highlighted growing interest in bringing those instruments on-chain.

The XAUT options are European-style contracts settled in USDT, with each contract tied to one XAUT token, which represents one troy ounce of physical gold.

What are options?
Options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a set timeframe. A call option allows the purchase of the asset, while a put option gives the right to sell it.

In simple terms, options work like paying a premium to lock in a future price. If the market moves in your favor, you can benefit from the agreed price; if not, you can let the contract expire and only lose the premium. Traders typically use options to manage risk or speculate on volatility.

Market size
The global gold options market is a multi-billion-dollar industry dominated by major exchanges such as CME and India’s MCX, with significant trading activity also occurring over the counter.

Bybit’s launch brings this traditional asset class on-chain within a major crypto trading venue for the first time.

While XAUT options have previously been available on smaller platforms like CoinCall since November 2024, Bybit’s entry marks the first time a leading global exchange has introduced them with institutional-grade liquidity support.