Kraken partners with STS Digital for new institutional crypto structured products platform
The newly unveiled platform from STS Digital provides institutional investors with predefined crypto investment products centered around options-based trading strategies.
On Wednesday, crypto derivatives company STS Digital announced the rollout of a new platform dedicated to structured products for digital assets, naming Kraken as the inaugural distribution partner for the service.
According to STS Digital, the newly launched platform provides clients with the ability to access options-based trading strategies that have been bundled into predefined payoff structures. The platform has been integrated into Kraken's infrastructure through an API connection and is currently being utilized to support the exchange's Dual Investment product, which delivers fixed returns to eligible users holding Bitcoin (BTC) and Ether (ETH).
The platform's introduction is part of a wider industry movement toward firms creating structured products from derivatives that can provide yield generation opportunities or protection against downside risk in cryptocurrency markets.
Speaking about the platform debut, Jeremy Dominh, who serves as head of structured products at STS Digital, stated that the initiative seeks to broaden institutional access to increasingly sophisticated digital asset investment strategies.
Kraken expands derivatives offering with structured products
Commenting on the collaboration, Alexia Theodorou, who holds the position of director of derivatives at Kraken, indicated that the partnership broadens the cryptocurrency exchange's derivatives portfolio to incorporate structured strategies like covered calls. According to Theodorou, these products provide clients with an alternative method for generating returns that goes beyond traditional staking or lending options.
This collaboration reflects our commitment to offering flexible, innovative products that help clients engage with digital assets in more sophisticated ways.
Earlier this year on Feb. 26, STS Digital successfully raised $30 million through a strategic funding round that was spearheaded by CMT Digital, with additional investment from Payward, which operates as the parent company of Kraken. According to statements from the company, the capital raised would be directed toward expanding its crypto options trading platform and enhancing access for institutional market participants.
How structured crypto products work
Financial institution DBS, which introduced tokenized structured notes on Ethereum in 2025, characterizes structured products as financial instruments where the performance or valuation is tied to an underlying asset, product or index. Put more simply, these instruments bundle derivatives into a unified product that delivers predefined payouts determined by the performance of the underlying asset.
Based on information from STS Digital, the platform delivers structured investment strategies that include options-based products designed for yield generation and managing exposure levels to digital assets.
The company noted that the platform functions under a license granted by the Bermuda Monetary Authority, which positions it within a regulated operational framework for its clients.
Although the platform operates under regulation, structured products can present complexity and may involve risks connected to volatility, liquidity constraints and counterparty exposure, especially within emerging markets like cryptocurrency.
Companies expand crypto investment offerings for institutions
The platform's debut arrives at a time when numerous firms are intensifying efforts to bring more sophisticated crypto investment products to market, encompassing tokenized notes, yield-generating structures and additional derivatives-linked investment offerings.
Just one day earlier on Tuesday, Omnes and Apex Group revealed their intentions to tokenize the Omnes Mining Note (OMN), described as an institutional-grade structured note connected to Bitcoin hashrate. This note provides direct economic exposure to newly produced Bitcoin specifically for institutional investors.
Also on Tuesday, Lombard, a company that develops Bitcoin-based lending infrastructure, made an announcement regarding its partnership with Bitwise Asset Management to deliver Bitcoin yield and lending services targeted at institutional custody solutions.