Kraken launches new crypto investment format with STS Digital
Crypto exchange Kraken has become the first platform to integrate new structured products from STS Digital. These products allow users to earn on cryptocurrencies with predefined levels of return and risk.
They are investment instruments that combine derivatives with traditional financial mechanisms, The Block reports.
New investment format
Structured products enable the creation of investments with fixed payout scenarios. For example, investors can generate yield by selling options or limit potential losses.The STS platform allows users to customize key parameters — underlying asset, maturity, strike price, and expected returns. Kraken will offer a simplified version of these products for retail users.
Focus on institutional investors
The main target audience includes banks, funds, and high-net-worth individuals seeking risk-managed exposure to crypto assets. At the same time, Kraken is expanding its derivatives segment and testing new tools via API integration.The launch of such products shows that the crypto market is increasingly converging with traditional finance. Complex instruments are becoming more accessible, giving investors more ways to manage risk.
In traditional finance, these tools have long been used to balance risk and return. In crypto, they open opportunities to profit not only from price growth but also from market volatility.
In the long term, this could become a new standard for institutional investment in digital assets.
Earlier, Kraken became the first crypto exchange to gain access to the U.S. Federal Reserve payment systems.
- Forex
- Crypto