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The Bermuda-based company provides trading options for over 400 cryptocurrencies, including spot, vanilla, and exotic options, catering to institutional interest as crypto options’ open interest reaches $40 billion.
STS Digital secured $32 million (Dmytro Glazunov/Unsplash/Modified by CoinDesk)
Key points:
- STS Digital obtained $30 million from CMT Digital, the parent company of Kraken exchange, along with other investors to enhance its institutional trading platform.
- The Bermuda-based company provides trading in over 400 cryptocurrencies, including spot, vanilla, and exotic options aimed at institutional needs.
- STS aims to establish itself as a vital liquidity source for crypto derivatives, leveraging the increasing institutional uptake of options for risk management and yield generation.
STS Digital, a trading entity focused on crypto options, announced that it has raised $30 million in a strategic funding round led by CMT Digital, the parent of crypto exchange Kraken, among other investors.
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The organization intends to utilize the capital to expand its institutional trading platform and reinforce its position as a liquidity provider in digital asset markets, as stated in a communication shared with CoinDesk.
Headquartered in Bermuda, STS Digital enables institutions to trade more than 400 cryptocurrencies through spot, vanilla, and exotic options, as well as structured products via a unified interface that supports web, API, and voice transactions.
Options are increasingly becoming a significant aspect of institutional crypto portfolios as firms implement them for risk hedging and yield generation amid market fluctuations. Current open interest is approximately $40 billion, according to TheTie, with a major portion on Deribit.
“This funding allows us to meet the surging demand from institutional clients for our spot, options, and structured product pricing,” stated chairman and co-founder Gideon Hyams. “As banks, asset managers, and financial intermediaries rush to adopt our pricing engine, this investment ensures we remain ahead of demand.”
CMT Digital, the lead investor in the funding round, expressed its belief that STS is positioned to become “a foundational liquidity layer for crypto derivatives.”
