Image Credit: Bybit
Key Takeaways
- Bybit has launched XAUT options trading, becoming the first major exchange to list Tether Gold options with institutional-grade liquidity support
- The contracts are European-style, USDT-settled, and accessible via Bybit’s Request for Quote system for over-the-counter trading
- Orbit Markets, whose team includes former Deutsche Bank precious metals executives, is providing liquidity to support the launch
Bybit has launched options trading on Tether Gold (XAUT), becoming the first major cryptocurrency exchange to offer the product with institutional-grade liquidity support, Bybit announced. The contracts are settled in USDT and are available through Bybit’s Request for Quote system for over-the-counter deals.
Bybit and Orbit Markets Partner to Support XAUT Options Liquidity
To support liquidity at launch, Bybit partnered with Orbit Markets, a crypto options market maker. Orbit’s team includes former senior executives from precious metals trading desks, among them the former APAC Head of Currencies and Precious Metals at Deutsche Bank.
“As tokenization accelerates, we believe the distinction between crypto and TradFi will continue to narrow,” said Jimmy Yang, co-founder of Orbit Markets.
Yang framed the launch as part of a broader convergence between crypto and traditional finance, adding:
“Gold options are a cornerstone of traditional derivatives markets, and we are excited to see growing interest in TradFi derivatives within crypto.”
XAUT Options Contracts Allow Hedging, Speculation, and Volatility Strategies
The XAUT options are European-style contracts, meaning they can only be exercised at expiry. Each contract corresponds to one XAUT token, which itself represents one troy ounce of physical gold. Traders can use the contracts to hedge risk, speculate on gold price movements, or construct custom volatility strategies through Bybit’s RFQ system.
Tether Gold is a token that provides holders with ownership of physical gold, with the XAUT options settling in USDT, Tether’s dollar-pegged stablecoin.
XAUT options have been available on smaller platforms, including CoinCall, since November 2024. Bybit’s entry marks the first time a major exchange has listed them with institutional-grade liquidity support, the company said. The global gold options market trades significant volume on exchanges including the CME and India’s MCX, as well as over the counter.
Bybit Lists XAUT Options Live as of Announcement
The XAUT options contracts are live on Bybit as of the announcement. The contracts are settled in USDT and accessible via Bybit’s RFQ system for over-the-counter trading, with Orbit Markets providing ongoing liquidity support.
