Eligible institutional clients can post a single collateral pool and margin their whole book, with positions and collateral assessed in one risk measure.
Hamilton, Bermuda, Newszy: STS Digital, the Bermuda Monetary Authority (BMA) regulated principal trading firm specialised in institutional digital asset derivatives, spot trading and structured products, today launched cross-asset portfolio margining for eligible institutional clients across its OTC business in spot, options and structured products, following completion of the BMA’s material change process under the Digital Asset Business Act 2018.
Portfolio margin is long established in listed derivatives and prime brokerage, where a client’s requirement reflects the risk of the whole book rather than the sum of its individual line items. STS Digital has extended that approach across digital assets. Positions and posted collateral are assessed together within a single risk measure, including the case where collateral value and position value move adversely at the same time. Exposure is netted across assets where risk genuinely offsets, and held separate where it does not.
For clients, that means one collateral pool rather than collateral fragmented by underlying. Tokens already held can be posted as margin against positions in other assets, subject to the firm’s eligibility and valuation rules, and risk-reducing structures are recognised as such rather than margined as though they were unhedged. Institutions active across multiple digital assets no longer need to fund the same risk twice.
“Institutions moving into digital assets are not asking us for more leverage. They are asking for their collateral to behave the way it does everywhere else in their business,” said Maxime Seiler, CEO of STS Digital. “If you run a book with a prime broker or on a listed derivatives exchange, you expect margin to reflect the risk of the portfolio, not the sum of its parts. That is what we have built, and it is live for eligible clients now.”
The framework operates within STS Digital’s established collateral and prudential risk policies. It is available only to eligible institutional and professional clients who meet the firm’s onboarding, documentation and risk assessment requirements, and is not offered to retail investors.
“The hard part of this product is not the trading, it is the risk model behind it,” said Gideon Hyams, Co-Founder and Chairman of STS Digital. “Netting risk across assets is easy to describe and difficult to do conservatively. Building it to an institutional standard is the hard part and it is what we have done. ”
The offering spans spot, vanilla and exotic options and structured products, delivered through portal, API and voice channels. Institutions interested in eligibility can contact the firm directly.
About STS Digital
STS Digital Ltd. is a 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 F Licence. The BMA is an internationally recognised financial regulator, an active member of the IAIS, GIFCS and GIICS, and participates in FSB and OECD-related forums and committees.
STS Digital is backed by leading industry investors including CMT Digital, Kraken’s parent Payward, Arrington Capital, Strobe Ventures, F-Prime, and BitRock Capital.
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.