STS Digital secures $30M to expand institutional trading platform and enhance crypto options liquidity. Opens new opportunities in volatile markets.
Funding Round Boosts Crypto Trading Firm
STS Digital, a trading firm focusing on cryptocurrency options, has secured $30 million in a strategic funding round. The investment is led by CMT Digital, the parent company of Kraken exchange, alongside additional backing from undisclosed investors.
Institutional Expansion and Product Diversification
The raised capital will be used to expand STS Digital's institutional trading platform and enhance its role as a key liquidity provider in digital asset markets. With operations based in Bermuda, the firm offers over 400 cryptocurrencies across spot, vanilla options, exotic options, and structured products through a unified interface that supports web, API, and voice access.
Increasing Demand for Crypto Options
Options have emerged as an essential tool for institutional investors seeking to hedge risks and generate yield during volatile market conditions. Currently, open interest in crypto derivatives stands at around $40 billion, with Deribit accounting for the majority of this volume.
Chairman's Statement on Future Growth
Chairman and co-founder Gideon Hyams highlighted that the investment will enable STS Digital to address the growing demand from institutional investors. "As banks, asset managers, and financial intermediaries increasingly integrate our pricing engine," Hyams noted, "this funding ensures we remain at the forefront of market demands."
Strategic Partnership with CMT Digital
CMT Digital, which spearheaded this investment round, views STS as a critical layer in the development of crypto derivatives. The company stated that it believes STS will become a foundational liquidity provider for these markets.
Conclusion
The strategic funding by CMT Digital and other investors marks a significant milestone for STS Digital's growth trajectory. With enhanced capabilities to meet institutional demand, the firm is poised to solidify its position in the expanding crypto derivatives space.
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