STS Digital Introduces Cross-Asset Portfolio Margin for Institutional Digital Asset Trading

Qualified institutional clients can now hold a single collateral pool and margin their entire book, with all positions and collateral evaluated within one unified risk measure.

Hamilton, Bermuda

STS Digital, a principal trading firm regulated by the Bermuda Monetary Authority (BMA) and focused on institutional digital asset derivatives, spot trading and structured products, has today introduced cross-asset portfolio margining for qualifying institutional clients across its OTC business in spot, options and structured products. The launch follows the successful completion of the BMA’s material change process under the Digital Asset Business Act 2018.

Source: Left, Gideon Hyams, Chairman and Co-Founder and right, Maxime Seiler, Chief Executive and Co-Founder.

Portfolio margining has long been standard practice in listed derivatives and prime brokerage, where a client’s margin requirement reflects the net risk of their entire book rather than simply adding up each individual position. STS Digital has now brought that same philosophy to digital assets. Positions and posted collateral are evaluated together under a single risk measure, including scenarios in which both collateral value and position value move against the client simultaneously. Risk is netted across assets wherever genuine offsets exist, and kept separate where they do not.

For clients, this translates to maintaining one collateral pool rather than fragmenting collateral by underlying asset. Tokens already in a client’s possession can be posted as margin against positions in other assets, subject to the firm’s eligibility and valuation criteria, while risk-reducing structures are treated accordingly rather than being margined as if unhedged. Institutions operating across several digital assets no longer face the burden of funding the same risk on multiple occasions.

“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 sits within STS Digital’s existing collateral and prudential risk policies. Access is restricted to qualifying institutional and professional clients who satisfy the firm’s onboarding, documentation and risk assessment requirements, and is not made available 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 covers spot, vanilla and exotic options, and structured products, accessible via portal, API and voice channels. Institutions wishing to explore eligibility are encouraged to reach out to the firm directly.

About STS Digital

STS Digital Ltd. is a regulated principal trading firm focused on digital asset derivatives and structured products, offering institutional-grade market access to professional clients and financial institutions. Clients can trade more than 400 tokens spanning vanilla and exotic options, spot, and structured products through a unified platform available via UI, API and voice channels. Established by derivatives industry veterans, STS Digital provides deep liquidity, competitive pricing and thorough risk management to support a seamless trading experience.

STS Digital Ltd. holds a DABA F Licence issued by the Bermuda Monetary Authority (BMA). The BMA is an internationally recognised financial regulator, an active member of the IAIS, GIFCS and GIICS, and takes part in FSB and OECD-related forums and committees. STS Digital is backed by prominent industry investors including CMT Digital, Kraken’s parent Payward, Arrington Capital, Strobe Ventures, F-Prime and BitRock Capital.

W: https://www.stsdigital.io/

Media Contact

Karen Bertoli

STS Digital

E: karen@stsdigital.io

T: +1 (305) 216 4190

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.