Bybit launched options trading for Tether Gold (XAUT) on its platform on June 12, becoming the first crypto exchange to offer options on a tokenized real-world asset, according to the exchange’s announcement. The new product allows traders to hedge or bet on gold price volatility through XAUT, amid the continuous expansion of tokenized gold and real-world assets on the blockchain.
Bybit Turns Tokenized Gold Into an Options Market
With XAUT options, Bybit is bringing tokenized gold beyond spot trading and into the crypto derivatives market. XAUT is typically used as a token representing physical gold, but options offer a more flexible way to trade, from risk hedging to betting on gold price volatility within a crypto-native environment.
According to Bybit’s June 12 announcement, this is the first time a crypto exchange has offered options on a tokenized real-world asset. The exchange also partnered with Orbit Markets to support liquidity in XAUT options and deployed a Request for Quote (RFQ) mechanism targeting professional clients.
This move comes as tokenized gold is gaining traction from both sides: the demand for gold as a hedging asset and the trend of bringing real-world assets onto the blockchain. For Bybit, the new product helps transform XAUT from a token tracking gold prices into a tool that can be used in broader derivative strategies.
How the XAUT Options Work
With XAUT options, the underlying asset is Tether Gold, while the contracts are settled in USDT, according to CoinDesk. Each XAUT represents one fine troy ounce of physical gold, so this product brings gold price volatility into the crypto market’s derivative structure.
For traders, XAUT options can be used to hedge or trade based on the direction of gold prices without handling physical gold delivery or opening a traditional commodities account. XAUT holders can use put options to limit risk when prices drop, while traders expecting prices to rise can use call options instead of buying the token directly.
Bybit also deployed a Request for Quote (RFQ) for XAUT options, targeting institutional and professional clients. According to the exchange, RFQ will support OTC trading with non-standard strikes, customized maturities, and multi-leg strategies, instead of relying solely on available contracts on the order book. This mechanism helps Bybit serve large orders or more complex derivative structures outside the regular listed market.
Why Tokenized Gold Is Getting More Attention
Tether Gold is currently the largest gold token by market capitalization. According to CoinGecko data, XAUT is trading around $4,319, with a market cap of approximately $2.65 billion, a 24-hour trading volume of about $490 million, and a circulating supply of around 612,823 XAUT.
XAUT market cap chart (W). Source: TradingView
PAX Gold (PAXG), XAUT’s main competitor in the gold token category, has a market cap of around $1.98 billion and a 24-hour trading volume of about $88 million at the same time. These figures are significantly lower than XAUT’s market cap of $2.65 billion and volume of around $490 million.
The attention toward XAUT also reflects broader developments in the gold market. Global central banks bought more than 1,000 tons of gold annually during the 2022-2024 period, before dropping to 863.3 tons in 2025, but still remaining higher than the average of 400-500 tons in the 2012-2021 period.
The nearest-month gold futures price on COMEX settled at $4,330.90 per ounce on June 16, which is 18.57% lower than the peak of $5,318.40 on January 29, but still 27.88% higher than the same period last year. This shows why tokenized gold has gained more traction among crypto traders who want exposure to gold while remaining within the blockchain infrastructure.
The Institutional Angle
Bybit is not just targeting retail traders with XAUT options. The exchange’s partnership with Orbit Markets and the deployment of RFQ show that this product is designed to serve both institutional and professional clients, a group that typically requires larger trade sizes and more flexible structures.
Orbit Markets plays the role of providing liquidity for XAUT options, while RFQ supports OTC transactions or customized structures instead of relying solely on the order book. These are familiar elements in the institutional derivatives market, where desks often require tailored quotes for large-volume trades or multi-step strategies.
For Bybit, this implementation brings XAUT closer to the logic of the traditional derivative commodities market, but on crypto infrastructure. The underlying asset is tokenized gold, settlement occurs in stablecoins, and the demand for use can come from both short-term trading and professional risk management.
Risks and What Comes Next
XAUT options open up additional trading tools for tokenized gold but also complicate risks. In addition to gold price volatility, users also face risks of the options market, from losing premium for option buyers to thin liquidity at certain maturities or strikes.
According to Tether Gold’s documentation, each XAUT represents one fine troy ounce of London Good Delivery physical gold, held in a vault in Switzerland. However, redemption and direct transactions with the issuer are still tied to KYC conditions, primary market processes, and terms of service, while the majority of users on the exchange will trade XAUT on the secondary market.
Following the initial launch phase, the question is whether XAUT options can maintain deep enough liquidity. If volume, spreads, and support from market makers stabilize, this product will be an early test for derivative demand around tokenized gold.
