STS Digital Launches Institutional Crypto Platform with Kraken Partnership

HAMILTON, Bermuda – March 25, 2026 – Principal derivatives trading firm STS Digital today announced the launch of a pioneering global platform for structured digital asset products, a move aimed at bridging the gap between sophisticated traditional finance and the burgeoning world of crypto assets. The new platform, debuting with a key strategic partnership with major exchange Kraken, is designed to meet the growing demand from banks, institutional investors, and high-net-worth individuals for regulated, risk-managed investment vehicles.

A New Frontier for Institutional Crypto Investing

The launch represents a significant maturation of the digital asset market, offering institutional-grade tools that have long been standard in traditional finance. STS Digital's platform provides a comprehensive suite of solutions, including options-based yield enhancement strategies, capital protection products, and bespoke structuring for specific investment objectives.

Central to the platform's appeal for institutional clients is its robust regulatory foundation. STS Digital operates under a Digital Asset Business Act (DABA) Class M License issued by the Bermuda Monetary Authority (BMA). This framework is globally recognized for its rigorous standards, providing the level of security, transparency, and legal oversight that institutional capital requires before entering a new asset class. The M License represents a key step in the firm's growth within Bermuda's tiered system, indicating a scaling of operations beyond its initial "Test" license phase and demonstrating a commitment to governance that institutional counterparties demand.

This regulated environment is critical in a market where institutional adoption is accelerating but remains contingent on the availability of secure and compliant infrastructure. By offering complex derivatives within a professional framework, STS Digital is directly addressing the core needs of asset managers and family offices seeking to deploy capital into digital assets with greater strategic control.

Beyond Bitcoin: Unlocking the Altcoin Universe

A key differentiator for the new platform is its expansive reach beyond the two largest cryptocurrencies. While much of the market's trading activity remains concentrated in Bitcoin and Ether, STS Digital provides institutional-grade liquidity and structured product capabilities for a subset of over 400 digital asset tokens, including a diverse range of altcoins.

This feature directly taps into a growing trend among sophisticated investors. Recent market analysis reveals that a significant majority—up to 73%—of institutional investors with crypto holdings are already diversifying into altcoins to seek out new sources of return and manage portfolio risk. However, accessing these less liquid markets with sophisticated tools has remained a significant challenge.

"Our trading platform offers an unparalleled breadth of assets, spanning both leading cryptocurrencies and a diverse range of altcoins, enabling institutions to invest with greater flexibility, precision, and strategic control," said Jeremy Dominh, Head of Structured Products at STS Digital. The ability to construct yield-generating or capital-protected strategies on a wider array of assets allows portfolio managers to execute more nuanced strategies that were previously difficult or impossible to implement at an institutional scale.

The Power of Partnership: Kraken's Strategic Move

Underscoring the platform's market readiness is its inaugural partnership with Kraken, one of the world's longest-standing crypto exchanges. Kraken is leveraging STS Digital’s derivatives expertise to launch its new "Dual Investment" offering. This product enables eligible Kraken clients to earn fixed returns on their Bitcoin or Ether holdings through strategies similar to covered calls, with payouts determined by the asset's price at a future date.

"Partnering with STS to bring structured strategies like covered calls to our platform strengthens our growing suite of derivatives solutions and gives clients a new way to generate return that’s distinct from traditional crypto approaches like staking or lending," stated Alexia Theodorou, Director of Derivatives at Kraken.

This collaboration is more than a simple service agreement; it is a deep strategic alignment. Payward, Kraken's parent company, is a key investor in STS Digital, having participated in its recent $30 million funding round. This equity relationship highlights a strategic decision by Kraken to partner for specialized capabilities rather than building them in-house, allowing for rapid product innovation and a strengthened competitive position.

For STS Digital, the partnership provides immediate access to a massive distribution channel. "We are pleased to combine our derivatives expertise with Kraken’s distribution," said Maxime Seiler, CEO of STS Digital. "Our alignment enables partners to bring options and structured products to their clients with instant access to liquidity, supported by broad token coverage, deep product breadth, and consistent liquidity."

Backed by Capital and Credibility

The firm's ambitious vision is supported by a formidable roster of investors from both the crypto-native and traditional finance worlds. The recent strategic funding round was led by CMT Digital, a venture firm with deep expertise in trading and market structure. Other prominent backers include Arrington Capital, F-Prime (an investment arm affiliated with Fidelity), Strobe Ventures, and BitRock Capital, in addition to Kraken's parent, Payward.

This backing serves as a powerful vote of confidence, providing not only capital for scaling but also invaluable strategic credibility. Investors like CMT Digital have publicly noted their belief in STS Digital's potential to become a "foundational liquidity layer for crypto derivatives," a critical piece of infrastructure for the entire ecosystem. This strong financial and strategic support positions the company to navigate the complexities of building institutional-grade markets.

By combining a regulated, tech-forward platform with deep liquidity and powerful distribution partnerships, STS Digital is setting a new benchmark for how institutional capital can engage with the full spectrum of the digital asset market, moving far beyond simple spot trading into a new era of sophisticated, risk-managed strategies.