SRP Americas 2006: crypto structured products put market myths to the test

Crypto’s volatility, liquidity, funding costs and custody infrastructure are evolving, opening up new possibilities for structured products while leaving investors with familiar risks to consider.

Crypto remains a high-risk asset class, but the market infrastructure around it is developing rapidly, challenging some of the assumptions that have limited its use in structured products.

Crypto is very highly correlated when you look at the major assets - Jeremy Dominh

That was the central theme of a fireside chat at SRP Americas 2026, which examined a number of common assumptions about crypto structured products, from volatility and liquidity to stablecoins, barriers, custody and tokenisation.

Jeremy Dominh (pictured), head of crypto structured solutions and QIS senior representative at STS Digital, argued that many of the principles underpinning traditional structured products also apply to crypto, although the underlying market introduces different sources of volatility, correlation and funding.

“Volatility is not necessarily a bad thing,” he said. “It is something that you can manage.”

_{Left to right: Pablo Conde, SRP and Jeremy Dominh, STS Digital}

Dominh pointed to options strategies as one way of managing crypto’s elevated volatility. When implied volatility is high, investors can potentially sell options to generate yield, while lower volatility can create opportunities to buy options for upside participation or downside protection.