Cryptocurrency derivatives company STS Digital said on Wednesday that it has launched a structured products platform for digital assets, with Kraken as its first distribution partner.
Digital STS he said the platform allows clients to access option-based strategies packaged in predefined payout structures. Kraken has integrated the platform via API and uses it to power its Dual Investment product, which offers eligible customers fixed returns on Bitcoin (BTC) and Ether (ETH).
The launch represents a growing push to bring more structured investment strategies to cryptocurrency markets as companies look to package derivatives into structured products that can provide gain or inheritance protection.
Jeremy Dominh, head of structured products at STS Digital, said the launch aims to expand institutional access to more elaborate digital asset investing strategies.
Kraken expands its derivatives offer with structured strategies
Alexia Theodorou, Kraken’s chief derivatives officer, said the partnership expands the exchange’s derivatives offering to include structured strategies such as covered call options. She said the products offer customers an alternative way to generate profits beyond staking or lending.
“This collaboration reflects our commitment to offering flexible, innovative products that help customers engage with digital assets in more sophisticated ways,” she said.
February 26, STS Digital lifted up $30 million in a strategic financing round led by CMT Digital with participation from Payward, Kraken’s parent company. The company said the funding will support the development of its cryptocurrency options trading platform and access to the institutional market.
How structured crypto products are designed to generate profit
DBS, which introduced tokenized structured bonds on Ethereum in 2025, defines structured products as financial instruments whose performance or value is linked to an underlying asset, product or index. Put simply, they combine derivatives into one product that offers predetermined payouts based on the performance of the underlying asset.
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 apply predetermined payout structures, enabling institutional investors to earn income in a variety of market conditions.
Related: Ripple joins Singapore sandbox to test RLUSD in trade finance
STS says the platform operates under license from the Bermuda Monetary Authority, which places it within a regulated framework for customers accessing the products.
Although the platform is regulated, structured products can be elaborate and may involve risks related to volatility, liquidity and counterparty exposure, particularly in less mature markets such as cryptocurrencies.
Companies are expanding their cryptocurrency investment offers for institutions
The launch comes as companies ramp up efforts to introduce more elaborate cryptocurrency investment products, including tokenized notes, yield structures and other derivatives-related offerings.
On Tuesday, Omnes and Apex Group announced plans to tokenize the Omnes Mining Note (OMN), an institutional-grade structured note backed by Bitcoin hashrate. The note provides direct economic exposure to fresh Bitcoin production for institutional investors.
On the same day, Lombard, which is building a Bitcoin-based lending infrastructure, announced that it would team up with Bitwise Asset Management to offer Bitcoin income and lending to institutional depository.
Warehouse: Banks want to run Vietnamese cryptocurrency exchanges, $70 million BTC plan Boyaa: Asia Express