Kraken Partners with STS Digital to Launch Global Structured-Products Platform for Institutional Investors

STS Digital, a Bermuda-based trading firm specializing in crypto options, has launched a global structured-products platform designed for sophisticated investors. In collaboration with Kraken, the major crypto exchange, this platform aims to bridge the gap between traditional finance and the growing market for advanced crypto derivatives.

The platform offers broad digital asset token coverage, with over 400 tokens available for clients. This extensive range of options allows institutional clients to gain exposure to various markets within a single venue. STS Digital has positioned its service as a solution for investors seeking tailored hedging solutions, which can be limiting with conventional products.

With the rise in demand for sophisticated risk management tools, venture funds, portfolio managers, and large mandate holders are seeking tailored hedging solutions. However, standard leveraged instruments like futures and perpetual swaps often follow a one-size-fits-all design, making it challenging to express nuanced views on volatility and returns.

The STS Digital platform focuses on customizable structures that can be adapted to different market outlooks and risk profiles. Crypto structured products typically embed options in order to manage volatility and generate additional income on top of spot holdings. According to data from TheTie, open interest in such instruments is currently around $47 billion.

Kraken is using the STS Digital platform to power its newly launched Dual Investment product, which allows eligible clients to earn fixed returns on bitcoin (BTC) and ether (ETH). This move enables Kraken to deepen its bench of derivatives solutions while relying on STS Digital's expertise in options structuring.