Bybit Launches Tether Gold Options Market as Tokenized Gold Trading Expands

Bybit has introduced a new options trading market for Tether Gold (XAUT), allowing traders to gain exposure to gold price movements directly through crypto infrastructure. The contracts are settled in USDT and are designed for hedging, speculation, and volatility trading strategies.

Each XAUT options contract corresponds to one XAUT token, which represents one troy ounce of physical gold. The options are European-style, meaning they can only be exercised at expiry. Traders can also structure customized over-the-counter positions through Bybit’s Request for Quote system.

Institutional Liquidity Supported by Orbit Markets Partnership

To support liquidity at launch, Bybit partnered with Orbit Markets, a crypto options market maker with experience in traditional financial markets. The firm includes professionals with backgrounds in major banks, including former leadership in currencies and precious metals trading desks.

Orbit Markets co-founder Jimmy Yang said the expansion of tokenized assets is reducing the gap between traditional finance and crypto markets, noting that gold options have long been a core part of global derivatives trading.

Tokenized Gold Market Gains Momentum

Tether Gold (XAUT) represents ownership of physical gold stored in vaults, and its expansion into options trading marks another step in bringing traditional financial instruments on-chain.

The global gold options market is already a multi-billion-dollar segment dominated by exchanges such asCME and MCX, with significant activity also taking place in over-the-counter markets.

While XAUT options have previously been available on smaller platforms, Bybit’s entry is notable due to its larger liquidity base and institutional reach, signaling growing demand for tokenized real-world assets within crypto markets.