"STS Digital is offering options contracts on over 400 cryptocurrencies at this point. That's not broadly offered in the market, because it's a very tough, technical, and risk-management problem to solve, and we feel like they've solved that."
"The derivatives let traders take on more leverage without worrying about options' expiration dates or the complexities of calls or puts. The financial assets' popularity has led to the rise of upstart crypto protocols like Hyperliquid and Lighter."
STS Digital, a Bermuda-based startup serving institutional investors, secured $30 million in funding led by CMT Digital, with participation from Kraken, Arrington Capital, and Fidelity's investment arm. The company enables large traders to buy and sell crypto options while serving as a market maker to provide liquidity. STS Digital offers options contracts on over 400 cryptocurrencies, addressing a complex technical and risk-management challenge rarely offered in the market. While crypto perpetuals have gained popularity among traders for their simplicity and leverage capabilities, STS Digital's CEO argues perpetuals carry significant downside risks, as evidenced by the $19 billion in liquidated positions on October 10.
#institutional-crypto-trading #options-markets #digital-assets #cryptocurrency-derivatives #venture-funding
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