CoinDesk
Bybit has launched options trading on Tether Gold (XAUT), the first time a top-tier crypto exchange has brought gold options live with institutional-grade liquidity support. Each contract is European-style, corresponds to one XAUT token, and settles in dollar-pegged USDT. The exchange partnered with Orbit Markets, a crypto-and-TradFi options market maker whose team includes former senior precious-metals traders from Deutsche Bank's APAC desk.
Traders can hedge gold exposure, speculate on price, trade volatility, or build custom strategies through Bybit's RFQ system for OTC-sized deals. XAUT itself represents one troy ounce of physical gold, giving the contracts direct exposure to the underlying metal rather than a synthetic.
Why it matters
The global gold options market is a multi-billion-dollar book dominated by the CME and India's MCX, with most volume still sitting OTC. Bringing that instrument on-chain through a venue like Bybit, and settling in USDT rather than a bank wire, narrows the line between traditional precious-metals derivatives and crypto rails. Orbit's Orbit co-founder Jimmy Yang framed it that way, saying the distinction between crypto and TradFi will continue to shrink as tokenization accelerates.
It also lands against a broader pivot toward real-world-asset derivatives on crypto venues. In May, combined exchange volumes fell 3.45% to $4.41T — the lowest since September 2024 — yet RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. The XAUT launch reads as a continuation of that RWA-derivatives build-out, extending it from perps to options.
Market impact
XAUT options had been available on smaller venues such as CoinCall since November 2024, but Bybit's entry with a dedicated institutional market maker is the first deployment at a top-tier exchange. The structural lift comes from Orbit's pricing depth on the bid-ask, which is what lets a derivatives book scale beyond retail size.
Frequently asked questions
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What is Tether Gold (XAUT)?
XAUT is Tether's gold-backed token, with each token representing one troy ounce of physical gold held in reserve. The new Bybit options are European-style contracts that each correspond to one XAUT token.
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How do XAUT options on Bybit settle?
The options settle in USDT, the dollar-pegged stablecoin, rather than in XAUT or in a traditional bank wire. Each contract covers one XAUT token, which itself represents one troy ounce of physical gold.
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Who is providing liquidity for the new XAUT options?
Bybit partnered with Orbit Markets, a crypto-and-TradFi options market maker, to provide institutional-grade liquidity. Orbit's team includes former senior precious-metals traders from Deutsche Bank's APAC desk.
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How is this different from gold options on the CME or MCX?
CME and MCX gold options dominate a multi-billion-dollar book and clear through traditional banking rails. Bybit's XAUT options are the first to bring a comparable gold-derivatives product to a top-tier crypto exchange, settling in USDT on-chain.
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Were XAUT options available before Bybit?
Smaller platforms like CoinCall have offered XAUT options since November 2024, but Bybit's launch is the first deployment at a top-tier crypto exchange with a dedicated institutional market maker behind the book.
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