One Counterparty. Every Asset Class. 24/7.

Blockchain Wire
By Blockchain Wire 7 Min Read

STS Digital is changing the architecture of institutional digital asset trading. Today, the BMA-regulated principal trading firm is expanding its institutional offering beyond crypto to deliver spot, OTC options, structured products and QIS across digital assets, FX, tokenised commodities and tokenised equities from a single principal counterparty, on a single set of rails and in one cross-margined account, 24/7. 

The significance is simple: institutional investors no longer have to treat digital assets and traditional markets as separate trading environments. 

A client can trade crypto, access options on tokenised equities, build structured exposure to major global assets and hedge positions around the clock, all through STS. 

And it is Always On. 

STS is bringing continuous institutional liquidity to tokenised versions of major equities and ETFs, as well as tokenised commodities, from gold to oil. Clients can access OTC calls and puts and options strategies including calendar spreads, butterflies, strangles and straddles, with pricing available around the clock, including when US markets are closed. 

This is where the model changes. 

Traditional brokerage infrastructure was built around market hours, individual asset classes and separate relationships. Digital asset infrastructure was built differently. STS brings digital asset rails and traditional market exposure together. This allows institutional clients to trade and hedge exposure across asset classes on the same rails as their digital asset business. 

“In traditional markets, a share or a bar of gold sits in a custody account, and moving it between brokers takes days,” says Maxime Seiler, Co-Founder and CEO of STS Digital Ltd. Tokenised, the same asset moves like a stablecoin: instantly, in any size, around the clock. That makes it collateral. This is the real story behind the institutionalization of blockchains. They are becoming the settlement rails for financial assets, and most of the friction of moving those assets between counterparties falls away. There are already around $40 billion of tokenised real-world assets on-chain, and adoption is only getting started. From today, our clients can trade, hedge and margin them alongside their digital assets, with one counterparty.” 

This is live today. Eligible clients can post tokenised gold or equity ETFs as collateral against their crypto options positions, in the same account. 

STS also extends its principal trading model into tokenised markets. Clients face one counterparty, with STS managing and hedging client flow within its established risk framework of instrument limits, continuous monitoring and independent oversight. 

The expansion of service is done in line with STS Digital Ltd’s Class F license under the DABA regime (Bermuda)” and every tokenised asset listed by STS is subject to internal due diligence covering the issuer, backing and redemption structure, reserves, custody and liquidity. 

Built for institutional markets 

The expanded offering is available to eligible institutional and professional clients and is accessible through the same channels clients already use with STS: voice via the trading desk, the STS client portal, and API. Settlement is available in stablecoins or the relevant tokens within the client’s existing STS account.  Availability varies by client jurisdiction and eligibility. 

Eligible clients can also trade on margin, with positions cross-margined across asset classes under their existing STS credit and collateral framework. Tokenised asset positions sit in the same account and against the same collateral as the rest of their portfolio, subject to client-specific terms. 

The initial universe includes tokenised versions of major US index ETFs, large-cap equities, FX and commodities including gold and oil, with coverage expected to expand as liquidity develops. And the ambition extends well beyond the initial universe. 

STS is building the framework for a broader single-name universe, more structured products and QIS strategies, and additional asset classes. The aim: an institutional options market around any tokenised asset that clears STS’s due diligence. 

“The convergence of digital assets and traditional financial markets that we have been seeing for years is creating opportunities for institutional investors, yet the infrastructure continues to need to evolve alongside it,” said Michael Arrington of Arrington Capital. “STS Digital is squarely addressing that opportunity by bringing multiple asset classes, sophisticated derivatives, and cross-margining together through a single principal counterparty. As both an investor and client, we see the value of this model firsthand and applaud the team for delivering solutions today’s market actually needs.”

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About STS Digital Ltd.

STS Digital Ltd. is an award winning regulated principal trading firm specialised in digital asset derivatives and structured products, providing institutional-grade market access to professional clients and financial institutions. Clients can trade more than 400 tokens across vanilla and exotic options, spot, and structured products through a unified platform spanning UI, API, and voice channels. 

Founded by derivatives veterans, STS Digital delivers deep liquidity, competitive pricing, and rigorous risk management to ensure a seamless trading experience.   

STS Digital Ltd. is licensed under the Bermuda Monetary Authority (BMA), holding a DABA Class F Licence. The BMA is a tier-one financial regulator with active membership in the IAIS, FSB, and OECD.  

STS Digital is backed by leading industry investors including CMT Digital, Kraken’s parent Payward, Arrington Capital, Strobe Ventures, F-Prime, and BitRock Capital.   

W: https://www.stsdigital.io/  

 

Disclaimer

The content provided is for general informational purposes only and shall not be construed as financial, investment, legal, tax, or any other professional advice. No representations or warranties are made, and nothing herein creates any contractual obligations, advisory relationship, or liability. STS Digital Ltd is regulated and supervised by the Bermuda Monetary Authority (BMA). Client acceptance is limited to professional and institutional clients and subject to prior onboarding and satisfactory KYC verification.