STS Digital, a trading firm specializing in cryptocurrency options, said it raised $30 million in strategic funding with support from CMT Digital, cryptocurrency exchange Kraken parent company Payward and other investors.
According to a statement shared with CoinDesk, the company plans to use the funds to expand its institutional trading platform and solidify its role as a liquidity provider in digital asset markets.
Headquartered in Bermuda, STS Digital allows institutions to trade more than 400 cryptocurrencies across spot, vanilla and exotic options, and structured products through a single interface that supports web, API and voice.
Options are an increasingly important part of institutional cryptocurrency portfolios as companies use them to hedge risk and generate returns during volatile market conditions. According to TheTie, open interest is currently around $40 billion, with Deribit accounting for the largest share.
“This investment positions us to meet explosive demand from institutional investors for pricing of our spot, options and structured products,” said Gideon Hyams, Chairman and Co-Founder. “As banks, asset managers and financial intermediaries scramble to integrate our pricing engines, this funding ensures we stay ahead of demand.”
CMT Digital, the lead investor in the round, said in a statement that it believes STS is positioned to become “the underlying liquidity layer for cryptocurrency derivatives.”
