Bybit, one of the world’s leading cryptocurrency exchanges by trading volume, has launched options trading on Tether Gold (XAUT), a token that gives you ownership of real physical gold.
XAUT options are now live and allow traders to hedge risks, speculate on gold price movements, trade volatility, and create custom strategies through Bybit’s Request for Quote (RFQ) system for over-the-counter (OTC) transactions.
Bybit partnered with Orbit Markets, a leading options market maker active in both cryptocurrencies and traditional finance to ensure high liquidity from the start. The Orbit team brings significant experience, including former senior executives on precious metals trading desks, notably the former Head of APAC 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. “Gold options are a cornerstone of traditional derivatives markets and we are excited to see growing interest in TradFi derivatives within cryptocurrencies.”
XAUT options are European-style contracts settled in the dollar-pegged USDT stablecoin, and each options contract corresponds to one XAUT token, which in turn represents one troy ounce of physical gold.
What are the options?
Options are derivative contracts that give the buyer the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before a specified date. A call option gives the right to buy, while a put option gives the right to sell.
