Orbit Markets is a provider of institutional liquidity for crypto options and has partnered with PI Digital to launch the first hybrid derivative focused on bitcoin and gold.

This initiative is one of the latest initiatives among firms in the crypto industry to ensure steady returns even during times of macroeconomic instability. The initiative aims to expose investors to digital assets and gold, both of which hold their value.

OrBit Markets stated in a release that “this hybrid asset product is perfect for investors who have experience with traditional assets like gold, and are now beginning to dip their feet into digital assets.”

Tether’s derivative product, XAUT is a gold-backed coin. OrBit said that the product would be settled at maturity in USDT, XAUT, or bitcoin, as determined by OrBit.

OrBit stated in its statement that traditional financial services firms (TradFi), offer hybrid products including those that combine stocks and commodities assets.

Investors “anticipating sustained rally” have increased in these two “safe-haven” assets amid concerns over the U.S. Central Bank’s hawkish policy, and the resulting turmoil within the banking industry.

OrBit stated that there is a dual-option on BTC and XAUT. Investors could express “various sophisticated opinions” about bitcoin and the XAU token, such as if the returns of one asset increase or decrease, but the returns of the other asset fall.

Investors can earn a higher yield by using the “worst of put” option if both assets increase in value. The liquidity provider stated that investors could be “put” in the worst performing asset if either asset falls.

MEV Capital , a DeFi-focused asset manager, used OrBit Markets-issued option contracts in March to hedge liquidity provider’s positions and prevent loss in Uniswap(v3) liquidity pools.

Pulkit Goyal is OrBit Markets’ VP of Trading. He added that OrBit Markets plans to launch hybrid products for institutional investors.

James Rubin is the editor.