Cryptocurrency exchange Bybit has launched a high-yield tokenized gold product that allows users to earn interest on Tether Gold (XAUT), the latest entrant in a broader effort to turn traditional non-yielding assets into income-producing products.
The product is designed to convert tokenized gold, typically a passive store of value, into a high-yielding asset using XAUT, the largest tokenized gold product, the company announced Thursday. This allows holders to earn passive income while maintaining exposure to the gold price.
Bybit said the offering is part of its broader expansion beyond traditional crypto trading products into tokenized real-world assets (RWA).
While monetizing tokenized assets is nothing new, extending this model to gold has garnered attention across the industry, highlighting efforts to further financialize real-world assets on blockchain rails.
Earlier this week, tokenization platform Theo announced a $100 million investment facility backing thUSD, a high-yield gold-linked stablecoin. The model seeks to purchase tokenized gold while hedging price risk by shorting gold futures, generating profits from funding and derivative market spreads rather than outright price movements.
Related: Tether expands support for USDT, Tether Gold in Opera’s MiniPay wallet
Gold hits record high, then experiences extreme volatility
After a historic rally that pushed gold prices above $5,500 per ounce, the yellow metal has experienced sharp fluctuations in recent months reflecting changes in the macro environment.
Gold is widely seen as a risk hedge, especially in times of geopolitical shocks such as $100 a barrel of oil and the ongoing war with Iran, and its price has fallen by about $1,000 from its peak. The decline comes as investors dial back expectations for Federal Reserve rate cuts, while rising real yields and a stronger U.S. dollar weigh on metals.
Analysts also note that positioning is congested. In January, as the bullion market neared its peak, a Bank of America survey of global fund managers found that the most crowded trade in the market was long gold.
Gold’s premium over long-term trends also reached its highest level since 1980, according to Bloomberg.
Nevertheless, tokenized goods continue to gain traction. Cointelegraph reported that the market surpassed $6 billion in February, largely due to gold’s historic rally.
Related: Tokenized gold triggers weekend price signals while CME futures close
