Crypto options liquidity provider OrBit Markets offers Bitcoin BTC and gold hybrid derivatives

Orbit Markets, an institutional liquidity provider of crypto options, launches the first Bitcoin and gold hybrid derivatives product with execution broker PI Digital.

The initiative is among the latest developments among crypto industry companies to seek stable returns at a time of macroeconomic uncertainty. It aims to give investors access to gold and digital assets, two assets that hold their value.

“This hybrid asset product is a perfect fit for investors who have experience with traditional assets such as gold and are now starting to explore digital assets,” OrBit Markets said in a press release.

The derivative product XAUT is a gold-backed token issued by Tether. At maturity, the product will be settled in either USDT, XAUT or Bitcoin as determined by OrBit, the Singapore-based company said.

In its statement, OrBit noted that traditional financial services firms (TraFi) commonly offer hybrid products, including those that combine stocks and commodity investments.

The company said investors expecting “an ongoing recovery” in these two “safe havens” have risen amid growing concerns about the US Federal Reserve’s tightening monetary policy and the resulting turmoil in the banking sector.

“It’s a dual option for both BTC and XAUT,” OrBit said, adding that investors could cover “various sophisticated views” about Bitcoin and the XAU token, including increases or decreases in returns for both, or if the returns rise for one of the assets but fall for the other.

For example, a “worst-of-put option” also ensures that “if an underlying (asset) falls, investors are “put into” the worst performer.” Otherwise, the investor will get an enhanced return,” the liquidity provider said.

“OrBit aims to offer flexible solutions to our counterparties,” added Pulkit Goyal, OrBit Markets VP of Trading. “OrBit plans to launch more hybrid products for institutional investors.”

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