STS Digital, a trading firm specializing in crypto options, introduced a structured products platform aimed at sophisticated investors as digital assets gain increasing acceptance among traditional financial institutions.
A month after raising $30 million, the Bermuda-based company said the platform, which covers 400 tokens, is 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 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 increasing demand as venture funds, portfolio managers and large mandate holders seek more tailored hedging solutions. Standard leveraged products such as futures and perpetuals, with their one-size-fits-all design, often fall short, especially due to path dependence.
Structured products often incorporate options that help weather volatility and generate additional income on top of spot market holdings. Open interest is currently around $47 billion, according to TheTie, and most of it is on Deribit.
For Kraken, the partnership also aims to deepen its product range. According to the statement, the exchange is leveraging STS’s derivatives expertise to power its dual investment product, introduced earlier this month, to allow eligible customers to earn fixed returns in bitcoin. and ether (ETH).
The deal brings “structured strategies like covered calls to our platform, strengthens our growing suite of derivatives solutions, and gives clients a new way to generate returns that is distinct from traditional crypto approaches like staking or lending,” Alexia Theodorou, head of derivatives at Kraken, said in the statement.
