Crypto Options Liquidity Provider OrBit Markets Offers Bitcoin and Gold-Hybrid Derivative
Orbit Markets, an institutional liquidity provider of crypto options, has launched the first bitcoin and gold hybrid-focused derivative product in collaboration with execution broker PI Digital. This product, known as XAUT, is a gold-backed token issued by Tether. At maturity, XAUT can be settled in either USDT, XAUT, or bitcoin, as designated by Orbit Markets.
The hybrid derivative aims to provide investors with exposure to both gold and digital assets, which are considered "safe haven" assets. It allows investors to express various sophisticated views on the performance of bitcoin and the XAU token, including increases or decreases in returns for both assets or if returns for one asset climb while the other falls. The "worst-of put option" allows investors to earn an enhanced yield if both assets appreciate but may put them into the worst performer if either asset falls.
Orbit Markets noted that traditional financial service firms (TradFi) commonly offer hybrid products, such as those combining stocks and commodity assets. The company aims to offer flexible solutions to institutional investors and plans to launch further hybrid products dedicated to these investors.