STS Digital launches structured crypto platform with Kraken as first partner

STS Digital said the platform offers institutional clients access to options-based strategies through predefined crypto investment products.

Crypto derivatives firm STS Digital said on Wednesday it had launched a structured products platform for digital assets, with Kraken as its first distribution partner.

STS Digital said the platform allows clients to access options-based strategies packaged into predefined payoff structures. Kraken has integrated the platform via an API and is using it to power its Dual Investment product, which offers eligible clients fixed returns on Bitcoin (BTC) and Ether (ETH). 

The launch reflects a broader trend of firms packaging derivatives into structured products that can offer yield or downside protection in crypto markets.

Jeremy Dominh, head of structured products at STS Digital, said the launch aims to expand institutional access to more complex digital asset investment strategies.

Alexia Theodorou, Kraken’s director of derivatives, said the partnership expands the exchange’s derivatives offering to include structured strategies such as covered calls. She said the products offer an alternative way for clients to generate returns beyond staking or lending.

“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, the parent company of Kraken. The company said the funding would support expansion of its crypto options trading platform and institutional market access.

DBS, which launched tokenized structured notes on Ethereum in 2025, defines structured products as financial instruments whose performance or value is linked to an underlying asset, product or index. In simple terms, they package derivatives into a single product offering predefined payouts based on how the underlying asset performs.

According to STS Digital, the platform offers structured investment strategies, including options-based products aimed at generating yield and managing exposure to digital assets.

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STS said the platform operates under a Bermuda Monetary Authority license, placing it within a regulated framework for clients.

While the platform is regulated, structured products can be complex and may carry risks tied to volatility, liquidity and counterparty exposure, particularly in less mature markets such as crypto.

The launch comes as firms expand efforts to introduce more complex crypto investment products, including tokenized notes, yield structures and other derivatives-linked offerings.

On Tuesday, Omnes and Apex Group announced plans to tokenize the Omnes Mining Note (OMN), an institutional-grade structured note linked to Bitcoin hashrate. The note gives direct economic exposure to new Bitcoin production for institutional investors. 

On the same day, Lombard, which builds Bitcoin-based lending infrastructure, announced that it will team up with Bitwise Asset Management to offer Bitcoin yield and lending to institutional custody. 

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Source: CoinTelegraph