STS Digital, a trading firm specializing in crypto options, has unveiled a structured products platform aimed at sophisticated investors as digital assets gain greater acceptance by traditional financial institutions.
A month after raising $30 million, the Bermuda-based company said the platform, which spans 400 tokens, was aimed at banks, family offices and high-net-worth individuals seeking returns on top of their spot market holdings. Kraken, the crypto exchange whose parent company, Payward, participated in the fundraising, will offer the platform to its partners, STS Digital said in a statement shared with CoinDesk.
Crypto structured products are seeing growing demand as venture funds, portfolio managers and large mandate holders seek more suitable hedging solutions. Standard leveraged products like futures and perpetual securities, with their one-size-fits-all design, often fail, particularly due to path dependence.
Structured products typically incorporate options that help manage volatility and generate additional income beyond cash market holdings. Open interest currently stands at around $47 billion, according to TheTie, with the lion’s share held by Deribit.
For Kraken, the partnership is also about deepening its product range. According to the release, the exchange leverages STS’s derivatives expertise to power its Dual Investment product, introduced earlier this month, to enable eligible customers to earn fixed returns on Bitcoin. and ether (ETH).
The deal brings “structured strategies like covered calls to our platform, strengthens our growing suite of derivatives solutions, and offers clients a new way to generate yield distinct from traditional crypto approaches like staking or lending,” Alexia Theodorou, director of derivatives at Kraken, said in the release.
