STS Digital, a Bermuda-regulated digital asset trading firm serving institutional clients, has secured $30 million in a round led by CMT Digital, according to a Thursday announcement.
Payward, the parent company of exchange operator Kraken, also participated alongside Arrington Capital, BitRock Capital, Strobe Ventures, and Fidelity’s affiliated investment arm, F-Prime.
Established in 2022, STS Digital offers trading in spot markets, options, and structured products across more than 400 digital assets through multiple access channels.
The fresh capital will be used to grow the firm’s spot and options infrastructure, enhance its ability to provide liquidity under volatile market conditions, and strengthen its financial position.
“This investment enables us to meet the explosive demand from institutional investors for our spot, options, and structured product pricing,” said Gideon Hyams, chairman and co-founder of the firm.
STS Digital supports OTC trading alongside advanced derivatives such as futures and bespoke structured solutions designed for sophisticated investors. The platform aims to deliver continuous market access with low-latency execution and institutional-grade risk management capabilities.
Sam Hallene, partner at CMT Digital, highlighted the firm’s approach to risk controls and platform design as key factors in the investment decision.
“They have already built a meaningful liquidity moat in crypto options, and our view is that liquidity is one of the most durable competitive advantages in financial markets,” Hallene said.
Arjun Sethi, chief executive of Payward, noted that the investment aligns with Kraken’s efforts to broaden its derivatives offerings.
“Derivatives are among the most powerful tools in crypto, giving market participants more ways to manage risk and navigate volatility,” Sethi said.
The latest development comes as institutional participants increasingly turn to options for hedging, yield generation, and volatility management rather than purely speculative trades.
Market observers have noted growing demand for counterparties with strong balance sheets and consistent execution capabilities, particularly following periods of heightened stress in digital asset markets.
