STS Digital taps Kraken as distributor for structured crypto platform

Crypto derivatives company 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 through 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 adds to a growing push to bring more structured investment strategies into crypto markets, as companies look to package derivatives into structured products that can offer yield or downside protection.

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

Kraken expands derivatives offering with structured 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 the expansion of its crypto options trading platform and institutional market access.

How structured crypto products are designed to generate yield

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 that offers predefined payouts based on how the underlying asset performs.

According to STS Digital, its platform offers a range of structured investment strategies, including options-based products designed to generate yield and manage exposure to digital assets. The company said these products use predefined payoff structures, allowing institutional investors to pursue income under different market conditions. 

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

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.

Companies expand crypto investment offerings for institutions

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 backed by the 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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