Crypto derivatives firm STS Digital has launched a structured products platform for digital assets, with exchange Kraken as its first distribution partner. The platform allows clients to access options-based investment strategies with predefined payouts. This partnership expands Kraken’s derivatives offerings and reflects a broader industry trend of firms creating more complex, yield-generating products for institutional investors.
STS Digital said on Wednesday it had launched a structured products platform for digital assets, with Kraken as its first distribution partner. The firm said the platform allows clients to access options-based strategies packaged into predefined payoff structures.
Kraken has integrated the platform via an API to power its Dual Investment product, which offers fixed returns on Bitcoin and Ether. This launch reflects a broader trend of firms packaging derivatives into structured products that can offer yield or downside protection.
Jeremy Dominh, head of structured products at STS Digital, said the launch aims to expand institutional access to more complex digital asset investment strategies. The platform operates under a Bermuda Monetary Authority license, placing it within a regulated framework.
Alexia Theodorou, Kraken’s director of derivatives, said the partnership expands the exchange’s offerings to include 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,” she said.
On Feb. 26, STS Digital raised $30 million in a strategic funding round led by CMT Digital, with participation from Payward, Kraken’s parent company. The company said the funding would support expansion of its crypto options trading platform and institutional market access.
The launch coincides with other firms expanding complex crypto investment products. On Tuesday, Omnes and Apex Group announced plans to tokenize the Omnes Mining Note, an institutional-grade structured note linked to Bitcoin hashrate.
Also on Tuesday, Bitcoin lending infrastructure firm Lombard announced a team-up with Bitwise Asset Management to offer Bitcoin yield and lending to institutional custody. DBS had previously defined structured products as instruments whose value is linked to an underlying asset, product, or index.
While the STS platform is regulated, structured products can carry risks tied to volatility, liquidity, and counterparty exposure. These risks are particularly relevant in less mature markets such as crypto.
