Bybit, one of the world’s leading cryptocurrency exchanges by trading volume, has launched options trading on Tether Gold (XAUT), a token that allows you to own real physical gold.
XAUT options are now available and allow traders to hedge risks, speculate on gold price movements, trade volatility, and build custom strategies through Bybit’s Request for Quote (RFQ) system for over-the-counter (OTC) trades.
Bybit has partnered with Orbit Markets, a leading options market maker active in both crypto and traditional finance to ensure significant liquidity up front. The Orbit team brings significant expertise, including former senior executives from precious metals trading desks, including the former Head of FX and Precious Metals for APAC 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 the cornerstone of traditional derivatives markets, and we are excited to see growing interest in TradFi derivatives within crypto.”
XAUT options are European-style contracts settled in USDT, a dollar-pegged stablecoin, with each option contract corresponding to one XAUT token, which itself 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 before or on a specific date. A call option gives the right to buy, while a put option gives the right to sell.
