Bybit, a leading cryptocurrency exchange, has officially launched options trading for Tether Gold (XAUT), allowing traders to hedge risks and speculate on gold prices. This new offering is settled in USDT, enhancing the trading experience for users interested in gold-backed assets.
The introduction of XAUT options enables traders to engage in various strategies, including hedging against price fluctuations and trading volatility. Bybit has implemented a Request for Quote (RFQ) system for over-the-counter (OTC) deals, facilitating customized trading options.
To ensure robust liquidity from the outset, Bybit has partnered with Orbit Markets, a prominent market maker specializing in crypto options. Orbit’s team includes experienced professionals from the precious metals trading sector, notably a former senior executive from Deutsche Bank.
“As tokenization accelerates, we believe the distinction between crypto and TradFi will continue to narrow,” stated Jimmy Yang, co-founder of Orbit Markets. “Gold options are a cornerstone of traditional derivatives markets, and we are excited to see growing interest in TradFi derivatives within crypto.”
The XAUT options are structured as European-style contracts, each corresponding to one troy ounce of physical gold. This means that every options contract is backed by a tangible asset, providing an additional layer of security for traders.
Options are derivative contracts that grant buyers the right to buy or sell an underlying asset at a predetermined price before a specified date. A call option allows the purchase of the asset, while a put option enables the sale. Traders typically utilize these contracts to manage directional risk or express opinions on market volatility.
The global gold options market is substantial, with billions of dollars in trading volume. Major exchanges, such as the CME and India’s MCX, dominate this space, with a significant amount of trading occurring OTC. Bybit’s entry into this market marks a significant shift, as it brings a well-established asset class onto the blockchain for the first time through a major cryptocurrency platform.
While smaller platforms like CoinCall have offered XAUT options since late 2024, Bybit’s launch represents a milestone, being the first top-tier exchange to provide these options with institutional-grade liquidity.
Bybit has launched options trading for Tether Gold, allowing traders to hedge risks and speculate on gold prices. This move, supported by Orbit Markets for liquidity, marks a significant entry into the gold options market on a major crypto platform.