STS Digital, the digital-asset derivatives trading firm and market access provider, has closed a $30 million strategic funding round led by CMT Digital, with participation from Payward (the financial infrastructure platform behind cryptocurrency exchange Kraken), Strobe Ventures, Arrington Capital, F-Prime (Fidelity) and BitRock Capital, as the firm looks to accelerate the growth of its crypto options trading platform.
The new capital will be used to scale STS Digital’s institutional-grade spot and options trading platform, deepen market-making capabilities and strengthen its balance sheet and liquidity position, positioning the business for what it describes as the next phase of institutional adoption in digital asset derivatives.STS Digital operates as a regulated principal trading firm specialising in digital asset options and institutional market access. According to the company, clients can trade more than 400 tokens across spot, vanilla and exotic options, and structured products via a unified platform spanning UI, API and voice channels.
“This round is about far more than capital,” commented Maxime Seiler, Chief Executive Officer and Co-Founder of STS Digital. “Partnering with institutions of this depth and reach gives us the ability to enter new markets faster, roll out new products at scale, and accelerate institutional adoption globally.”
The company frames the opportunity around the growth of crypto derivatives – particularly options – as institutional participants increasingly use them for hedging, yield generation and volatility exposure, rather than purely directional trading.
“Digital asset options is the fastest-growing product category within the asset class and the market demands principals with resilient balance sheets, best-in-class execution, and disciplined risk management,” said Seiler. “This funding allows us to scale with focus and intent, alongside partners who will help shape the next phase of crypto derivatives.”
The emphasis on balance-sheet strength and disciplined risk management reflects a wider shift in market expectations following periods of volatility and stress in the digital asset sector. In its announcement, STS said market participants are placing increased importance on execution quality, counterparty strength and liquidity resilience when selecting derivatives counterparties.
Investor commentary accompanying the raise underscores the strategic positioning of the firm. Sam Hallene, Partner at CMT Digital, said STS had built what he described as a “meaningful liquidity moat” in crypto options and highlighted its approach to risk management and platform scalability, adding that the firm has the potential to become “a foundational liquidity layer for the crypto derivatives market.”
Arjun Sethi, CEO of Payward, said the partnership would help expand Kraken’s derivatives capabilities and provide traders with additional tools to manage risk in fast-moving markets.
For STS, the strategic capital injection comes as it seeks to expand its institutional footprint and scale distribution of its pricing and execution infrastructure.
“The objective is to create a fully integrated platform enabling clients to trade beyond crypto and into tokenised traditional assets,” Seiler said.
The company has indicated that it intends to extend support beyond cryptocurrencies to include tokenised equities, commodities and foreign exchange, broadening the range of assets on which clients can structure options and structured products.
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