Crypto derivatives firm STS Digital announced on Wednesday the launch of a new structured products platform for digital assets, with cryptocurrency exchange Kraken serving as its inaugural distribution partner. The platform enables clients to access options-based strategies packaged into predefined payoff structures.
Kraken has integrated the platform via an API and is utilizing it to power its Dual Investment product, which offers eligible clients fixed returns on Bitcoin (BTC) and Ether (ETH). This launch is part of a broader industry push to bring more sophisticated structured investment strategies into cryptocurrency markets, as firms seek to package derivatives into products that can offer yield or downside protection.
Jeremy Dominh, head of structured products at STS Digital, stated the launch aims to expand institutional access to more complex digital asset investment strategies. Alexia Theodorou, Kraken’s director of derivatives, emphasized that the partnership broadens the exchange's derivatives offering to include structured strategies like covered calls. "This collaboration reflects our commitment to offering flexible, innovative products that help clients engage with digital assets in more sophisticated ways," Theodorou said.
The platform offers a range of structured investment strategies, including options-based products designed to generate yield and manage exposure to digital assets. It operates under a Bermuda Monetary Authority license, providing a regulated framework for clients. STS Digital's platform supports strategies across more than 400 digital assets and allows for configuration of maturity, strike price, and payout structure.
The announcement follows a $30 million strategic funding round for STS Digital led by CMT Digital on February 26, with participation from Payward, Kraken's parent company. The funds are intended to support the expansion of its crypto options trading platform and institutional market access.
This development occurs alongside other institutional-focused expansions in the crypto space. On the same week, Omnes and Apex Group revealed plans to tokenize the Omnes Mining Note (OMN), an institutional-grade structured note backed by Bitcoin hashrate. Separately, Lombard announced a partnership with Bitwise Asset Management to offer Bitcoin yield and lending services to institutional custody clients.
