Bybit has taken a significant step into the world of tokenized real-world assets by launching options trading for Tether Gold (XAUT). This move makes Bybit the first crypto exchange to offer options on a tokenized asset. Each XAUT token represents ownership of one troy ounce of physical gold, allowing traders to hedge strategies, volatility plays, and directional bets without touching traditional commodities desks.
The new XAUT options market isn't just a vanilla listing. Bybit partnered with Orbit Markets to implement Request for Quote (RFQ) functionality, catering specifically to institutional clients who require customized options contracts rather than off-the-shelf products. Standard options on an exchange let users pick from predetermined strike prices and expiration dates, whereas RFQ systems enable big players to request exactly the contract they want, and market makers compete to fill it.
Bybit's gold strategy has been building for months. The exchange previously introduced XAUT perpetual contracts, giving traders leveraged exposure to tokenized gold without expiration dates. In March 2026, Bybit rolled out the XAUT Earn product, allowing holders to generate yield on their gold-backed tokens. This options launch didn't come out of nowhere.
For investors, this means covered calls let gold holders generate income on positions they plan to keep. Protective puts create a floor under portfolio values during uncertain markets. Straddles and strangles let traders profit from volatility without picking a direction. For institutional players specifically, the RFQ functionality removes a major barrier to entry.
However, tokenized gold options add a layer of complexity and counterparty exposure that doesn't exist when you simply buy XAUT and hold it. Traders need to understand that these options carry standard risks, including liquidity gaps during volatile periods, potential for significant losses on leveraged positions, and platform risk inherent to any centralized exchange.