STS Digital, a crypto derivatives firm, has launched a structured products platform for digital assets, naming Kraken as its first distribution partner. The platform allows clients to access options-based strategies packaged into predefined payoff structures. Kraken has connected to the platform through an API and is using it to power its Dual Investment product, which offers eligible clients fixed returns on Bitcoin and Ether.
The launch reflects a wider industry trend of firms packaging derivatives into structured products designed to offer yield or downside protection in crypto markets. According to STS Digital, the platform provides structured investment strategies, including options-based products aimed at generating yield and managing exposure to digital assets. The firm operates the platform under a Bermuda Monetary Authority license, placing it within a regulated framework.
Jeremy Dominh, head of structured products at STS Digital, said the launch is intended to broaden institutional access to more complex digital asset investment strategies. Alexia Theodorou, Kraken’s director of derivatives, said the partnership extends the exchange’s derivatives offering to include structured strategies such as covered calls. She added that the products give clients an alternative way 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,” Theodorou said. The partnership builds on an existing financial relationship between the two companies. On February 26, STS Digital raised $30 million in a strategic funding round led by CMT Digital, with participation from Payward, the parent company of Kraken.
STS Digital said the funding would support expansion of its crypto options trading platform and institutional market access. 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 practical terms, they package derivatives into a single product with predefined payouts based on how the underlying asset performs.
While the platform operates within a regulated framework, structured products can carry risks tied to volatility, liquidity, and counterparty exposure, particularly in less mature markets such as crypto. The launch arrives as firms across the industry step up efforts to introduce more complex crypto investment products, including tokenized notes, yield structures, and other derivatives-linked offerings. This broader push signals growing institutional appetite for sophisticated digital asset strategies.
On the same day that STS Digital’s partnership was announced, two other notable developments emerged in the space. Omnes and Apex Group announced plans to tokenize the Omnes Mining Note, an institutional-grade structured note linked to Bitcoin hashrate that provides direct economic exposure to new Bitcoin production. Separately, Lombard, which builds Bitcoin-based lending infrastructure, announced a collaboration with Bitwise Asset Management to offer Bitcoin yield and lending services to institutional custody clients.
Originally reported by CoinTelegraph.
