Bybit and Tether Offer Gold-Backed Crypto

The collaboration centers on Tether's gold-backed token, XAUT, which is pegged 1:1 to one fine troy ounce of physical gold stored in Swiss vaults. This structure provides investors with direct ownership of gold, verifiable by serial number, without the logistical challenges of storing and insuring physical bullion. Launched in 2020, Tether Gold (XAUT) operates primarily as an ERC-20 token on the Ethereum blockchain, but is also supported on other chains like TRON. This allows for fractional ownership, meaning investors can buy as little as 0.000001 of a troy ounce, and enables easy transfer and 24/7 trading across the globe. The "Golden Season" initiative includes over $1 million in gold-backed rewards to incentivize users. The program features trading rewards, referral bonuses, and temporary yield pools tied to XAUT, aiming to attract and retain users during a period of high market volatility. This partnership comes as the crypto "Fear & Greed Index" has signaled extreme fear among investors. Bybit's Co-CEO, Helen Liu, emphasized that the move is designed to provide users with stability and a hedge against inflation. Bybit, the world's second-largest crypto exchange by trading volume, intends to more deeply integrate XAUT across its platform. This includes expanding its use in trading pairs, savings products, and other structured yield opportunities. The broader strategy for Bybit includes the introduction of up to $10 million in new yield products linked to stablecoins and other real-world assets (RWAs) in March. This signals a larger push towards offering more stable, asset-backed investment options. The tokenized gold market has grown to over $6 billion, with XAUT and PAX Gold (PAXG) representing about 97% of the market capitalization as of mid-February 2026. The market capitalization for XAUT alone exceeds $2.2 billion.