STS Digital is a fintech business focused on the digital asset space, headquartered in Zug, Switzerland, with a registered entity in Bermuda. The company is positioned as an institutional-grade digital asset trading and market-making platform, and is committed to providing comprehensive services covering spot, derivatives and structured products to global professional customers. STS Digital has established a diversified business system in legal compliance, technology architecture, customer service and market access through multiple locations.
STS Digital operates in a holding structure, with Switzerland's STS Digital AG as the technology and operations center, and Bermuda's STS Digital Ltd as the main transaction execution and market making entity, with the help of the local virtual asset regulatory framework. The company's management team has a deep background in traditional finance and digital assets, and has rich experience in derivatives structure design and risk management.
2. Core business structure The core business of
STS Digital includes the following modules:
Digital asset market making and liquidity provision
The company provides bilateral quotations for digital assets on multiple trading platforms and OTC markets, covering mainstream currencies such as BTC, ETH, SOL, AVAX, etc., to help the platform enhance depth and improve slippage.Over-the-counter (OTC Desk)
provides high-liquidity, large-value quotation services for high-net-worth individuals, funds, family offices and other institutional clients, including cryptocurrency trading, customized settlement, bank docking and custody services.Structured Products and Derivatives Trading
The Company designs and issues structured products covering strategies such as yield enhancement, capital protection, and volatility trading, and supports options, swaps and other instruments linked to crypto assets to meet customers' diversified investment and hedging needs.API Liquidity and Trading Access
Provide standardized or customized API interfaces to exchanges, wallet platforms, and brokers to achieve automatic transaction docking, quotation aggregation, and risk control early warning.Custody and settlement cooperation
Through docking with third-party compliant custodians, the separation of safe asset storage and clearing is realized, and the security of customer funds and transaction reliability are improved.
3. Technical Capabilities and Platform Architecture
STS Digital has a quantitative trading and risk management platform specially developed for digital asset scenarios. Stable performance in terms of position control.
Its system has the following technical features:
high-performance matching and risk hedging module,
real-time risk control limit system and liquidation tracking mechanism
, multi-layer permission management and asset isolation logic
, native compatibility with mainstream blockchain networks (such as EVM system),
scalable structured product modeling components
The company prioritizes security and deploys functional modules such as hot and cold wallet management, MPC multi-party signature, on-chain address monitoring, and transaction audit logs to ensure the overall availability and compliance of the system.
4. flovtec acquisition and integration analysis
In 2023, STS Digital acquired Swiss market-making company flov technologies AG to quickly gain access to its expertise in structured product design, algorithmic trading, and passive liquidity management.
FLOVTEC has provided algorithmic model-based liquidity services on several European and Asian trading platforms, emphasizing risk-constrained strategies and controllable hedging logic. With this acquisition, STS Digital further strengthens its trading technology and market-making coverage, and the integrated team continues to work collaboratively in Zug, driving system convergence and customer migration.
The integration brings the following synergies:
flovtec's trading engine is integrated with STS's API module to improve multi-platform trading
compatibilityflovtec's institutional client resources can be migrated to STS's product line
, and the technical and compliance teams can be merged to improve operational efficiency
V. Industry Position and Competitive Landscape
STS Digital operates in a highly competitive field, with participants including crypto-native market makers (e.g., Wintermute, GSR), traditional institutional transformation platforms (e.g., Jump Crypto), and regional market makers (e.g., Auros, Enigma). In this pattern, STS Digital's advantages are mainly reflected in the following aspects:
Compliance framework with Switzerland and Bermuda as the core, supporting institutions to access
product lines covering on-chain and off-chain markets
, flexible layout, strong technology self-development capabilities
, and diversified customer interfaces (API, RFQ, direct connection).
In the regional market, STS Digital has frequent cooperation with small and medium-sized trading platforms, which not only assume the role of part of the order book depth, but also provide customized derivatives as income tools, bringing them differentiated advantages.
6 Business model and revenue composition
STS Digital's revenue sources mainly include:
Market-making Spread Profit: Gain profit from the spread between two-sided quotes through active and passive trading strategies.
OTC Fees & Settlement Fees: Fees are charged for pricing and matchmaking for block trades.
Structured Product Design Fee and Issuance Spread: Structured products are structured based on options or derivative instruments, and management fees are charged according to the income model.
API access and technical service authorization fee: Provide liquidity or access API to external platforms, and charge based on call frequency or traffic.
Strategic cooperation and profit sharing: Carry out arbitrage or hedging transactions with partners and share profits and losses.
7. Organizational structure and team background
STS Digital's management has diverse backgrounds, and the core members have worked in well-known financial and crypto companies such as UBS, Credit Suisse, Deutsche Bank, Bitfinex, and OKX. The team structure is as follows:
CEO: Responsible for strategy and external
developmentCTO: Leading system R&D and technical
architectureCRO: Coordinating risk control
systemHead of Trading: Responsible for market-making strategy and derivatives modelingLegal
& Compliance : Responsible for regulatory docking and compliance operations
The company has a flat organization, a relatively high proportion of technical teams, and emphasizes agile collaboration and cross-regional remote work.
8. Risk control system and compliance strategy
STS Digital regards compliance and risk control as the foundation of long-term sustainable operation, and its risk control system covers the following aspects:
Dynamic monitoring of multiple risk control indicators (position ratio, maximum drawdown, VaR, etc.).
Automatic stop-loss and order restriction mechanismhierarchical
authority and operation audit
processRegular system penetration testing and hot update
managementSeparation of asset ownership with compliant custodians to avoid mixed use
of customer assets
In terms of compliance, STS Digital complies with the regulatory requirements of the jurisdictions in which it operates, such as the Bermuda virtual asset regulatory framework, the Swiss Financial Market Supervisory Authority (FINMA) standards, and cooperates with KYC/AML Programme execution.
9. Development strategy and future planning
In the next three years, STS Digital plans to expand in the following directions:
expand product coverage: launch more structured tools pegged to crypto assets, and support programmable income products.
Entering emerging markets: Deploy market-making cooperation and platform docking in the Middle East, Asia, Latin America and other regions.
Optimize hosting synergy: Enhance integration capabilities with hosting providers such as Fireblocks, Copper, Anchorage, and more.
Institutionalized platform as a platform: Build a unified API control panel to open up customer account management, transaction settings, report query and other functions.
Enhance on-chain interaction capabilities: Explore DEX market making and on-chain structured strategy deployment, such as Ethereum L2, Solana, etc.
The company's long-term vision is to become the world's leading crypto asset institutional service provider, and realize a one-stop solution platform for market making, derivatives, custody and API access.
10. Summary
As a digital asset platform focusing on serving institutional customers, STS Digital is gradually building differentiated competitive barriers in the global market by virtue of its comprehensive advantages in liquidity provision, structured product development, risk control system and cross-regional compliance capabilities. Through the acquisition of Flovtec and the strengthening of technology system integration and customer service capabilities, the company is expected to play a more important role in multi-asset support, cross-border transaction docking and on-chain financial ecosystem in the future.
