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Built for scrutiny: How STS Digital holds and protects client assets
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Recent high-profile security incidents across the digital asset ecosystem have prompted institutional investors and treasury teams to take a closer look at how their assets are actually held, not just promised to be held. This is a healthy and overdue reckoning. The firms that have built their infrastructure with the right architecture from day one are well-positioned for this moment. STS Digital is one of them.
A note on the current environment: 2026 has seen a number of significant security incidents across various parts of the digital asset ecosystem, reminding the market that custody architecture matters enormously. At STS Digital, our response isn’t reactive – our mandate from our regulator, the Bermuda Monetary Authority, requires segregation of client and firm assets, and our operational infrastructure has been built around this principle since founding. We welcome the scrutiny. It’s exactly the kind of question serious institutions should be asking their counterparties.
- $5B+ cumulative option notional traded
- 400+ tokens quoted across products
- $30M strategic raise in Q1 2026 to further bolster balance sheet
How we protect client assets
BMA-regulated framework:
Licensed by the Bermuda Monetary Authority under DABA Class M – covering derivatives trading, exchange, and custodial wallet services. Class F upgrade imminent. Audited at group level for three consecutive years.
Segregated custody – BMA mandated:
Client assets are held in client accounts which are ring-fenced from STS’s own capital at all times. Client assets are never used for proprietary trading, lending or investments.
Counterparty clarity:
Full transparency on counterparty identity and exposure. STS always trades as principal – you always know exactly who you are dealing with, under a signed legal agreement.
Transparent terms:
Every product has clearly defined terms, agreed upfront in writing – no surprises, no hidden mechanics. Full risk disclosures available at onboarding and via the STS client portal.
Custody infrastructure: How clients assets are held
Powered by Fireblocks and Fordefi MPC – with BitGo and Copper for institutional tri-party and ACA setups
- Client accounts: Client assets are physically segregated from STS assets, with per-client accounting segregation. Visible in real-time via the STS client portal and internal ledger.
- STS own accounts – fully separated: STS assets are held with full physical and accounting segregation from all client assets.
- Off-exchange settlement via BitGo Go Network: As the first principal derivatives dealer on BitGo’s Go Network, clients can trade with STS while assets remain in custody with BitGo . No prefunding. No transfer. No exchange exposure.
Conservative Risk Modelling
Continuous Stress-Testing:
Parametric model used to stress test returns across multiple market scenarios.
Conservative Risk Limits:
Exposure monitored continuously with monthly detailed reporting to the BMA.
Counterparty risk controls:
Per-counterparty risk limits, off-exchange settlement and daily sweeps of excess balances.
Earn Yield with STS Digital
Options and Structured Products – predictable returns, institutional quality
- Capital-protected notes: Defined maturity, protected principal, fixed or conditional coupon. Yield certainty without sacrificing capital security.
- Yield-enhanced structures: Higher yield potential linked to market conditions, with clearly bounded downside. Contractually defined – no hidden optionality.
- Short-duration products: Flexible terms from 1 day to 1 year for treasury clients seeking liquidity alongside yield. Rollable on maturity.
- Custom mandates: Structures tailored to your risk appetite, currency, and return objectives – designed in collaboration with your team.
Want to explore what STS Digital can do for your treasury?
Speak with your relationship manager or visit stsdigital.io
BMA-regulated · Fireblocks MPC · BitGo OES · Shoulder to shoulder with our clients