Bybit launches XAUT options with institutional liquidity support
In brief
- Bybit launched European-style XAUT options settled in USDT, each contract representing one troy ounce of physical gold.
- Orbit Markets, a crypto options market maker with precious metals trading veterans, partnered with Bybit for the launch.
- XAUT options enable traders to hedge risk, speculate on gold prices, and trade volatility on a major platform.
Market opportunity
The global gold options market is already a multi-billion-dollar industry, dominated by traditional exchanges like the CME and India's MCX. XAUT options were previously available on smaller platforms like CoinCall since November 2024, but Bybit's entry marks the first time a top-tier exchange has offered them with institutional-grade liquidity support.
The options represent a significant expansion of crypto's derivatives infrastructure. The XAUT options are European-style contracts settled in USDT stablecoin, with each options contract corresponding to one XAUT token, which itself represents one troy ounce of physical gold.
Liquidity and expertise
Bybit partnered with Orbit Markets, a leading crypto options market maker, to ensure deep liquidity from the start. The partnership matters because Orbit's team brings significant expertise, including former senior executives from precious metals trading desks, notably the ex-APAC Head of Currencies and Precious Metals at Deutsche Bank.
That pedigree is intentional. Gold derivatives require deep domain knowledge. Traders use options to hedge risk, speculate on gold price movements, trade volatility, and build custom strategies — tasks that demand both technical crypto infrastructure and traditional markets acumen.
