Even as some retail investors retreat from the cryptocurrency market amid recent price declines, institutional interest remains strong. This trend is bolstering companies like STS Digital, a Bermuda-based platform specializing in crypto options trading for institutions, which announced a $30 million funding round on Thursday. The new capital will fuel expansion and solidify STS Digital’s position as a key liquidity provider in the evolving digital asset landscape.
The funding round was led by CMT Digital, with participation from Kraken’s parent company, Payward, venture firm Arrington Capital, and an investment arm of Fidelity. This influx of capital underscores the growing appetite among established financial players for sophisticated crypto derivatives, even during periods of market volatility. STS Digital currently facilitates trading in over 400 cryptocurrencies, offering spot trading, vanilla options, and more complex exotic options structures.
“STS Digital is offering options contracts on over 400 cryptocurrencies at this point,” said Sam Hallene, an investment partner at CMT Digital, in a statement to Fortune. “That’s not broadly offered in the market, because it’s a particularly tough, technical, and risk-management problem to solve, and we sense like they’ve solved that.” The company’s ability to provide access to a wide range of crypto assets through various options types is a key differentiator, attracting institutional clients seeking to manage risk and generate yield.
The Rise of Institutional Crypto Trading
The demand for crypto options is increasing as institutional investors seek to hedge their portfolios and capitalize on market opportunities. Open interest in crypto options currently stands around $40 billion, according to data cited by STS Digital, demonstrating a significant level of activity. Whereas perpetual futures – a type of derivative contract – have gained popularity for their simplicity and leverage, STS Digital’s founders believe options offer a more controlled risk profile for institutional investors.
Maxime Seiler, cofounder and CEO of STS Digital, pointed to a significant market downturn on October 10, 2025, as an example of the risks associated with perpetual futures. As reported by Fortune, that day saw over $19 billion in positions liquidated as prices plummeted. Seiler argues that the liquidation cascade was amplified by the structure of perpetual futures contracts, where exchanges automatically close out losing positions, potentially exacerbating market declines.
“That’s how you end up in a 10/10,” Seiler said, referring to the October 10th event. “These crypto-native exchanges on perps led and amplified this whole selloff by liquidating clients, driving prices down further by creating more liquidation.” Options, with their defined expiration dates and potential to cap losses, offer a different approach to risk management, appealing to institutions prioritizing capital preservation.
From Wall Street to Bermuda
STS Digital’s founders bring extensive experience from traditional finance. Maxime Seiler began his career at Credit Suisse, while Gideon Hyams spent nearly two decades at UBS. The pair met while working at the trading firm G-20, recognizing a gap in the market for a sophisticated options trading platform tailored to institutional needs. They founded STS Digital in 2022, and the company has since grown to nearly 50 employees.
The company’s client base includes prominent crypto firms like the Uniswap Foundation. STS Digital has too experienced substantial revenue growth, tripling its annual revenue from 2024 to 2025. While the company is currently profitable, Seiler declined to disclose specific financial details. The $30 million in new funding will be used to expand the platform’s capacity to handle larger trades from institutional clients and to further grow the team.
“We’re getting more and more institutional-size clients onboarding,” said Hyams. “They want to do bigger trades, so we’re scaling the business.” STS Digital offers trading through voice, a user interface, and an API, catering to a variety of trading styles and preferences. The platform also provides market making services, adding liquidity to digital asset markets across over 30 centralized and decentralized venues.
STS Digital’s success reflects a broader trend of increasing institutional adoption of digital assets. As the crypto market matures, sophisticated investors are seeking tools and platforms that offer robust risk management capabilities and access to a wide range of investment opportunities. The company’s focus on options trading, coupled with its experienced team and institutional-grade infrastructure, positions it to capitalize on this growing demand. More information about STS Digital’s offerings can be found on their website.
Looking ahead, STS Digital plans to continue expanding its platform and services to meet the evolving needs of institutional investors. The company will focus on enhancing its technology, expanding its team, and forging new partnerships to further solidify its position as a leading provider of crypto options trading solutions.
What are your thoughts on the increasing institutional investment in crypto? Share your comments below and join the conversation.
