Coinbase Clearing business officially approved by the CFTC, to support USDC as collateral and 24/7 settlement
This time, Coinbase wasn’t approved as a single point approval, but rather one piece at a time in building out the derivatives base.
BlockBeats September 29 reports that Coinbase said in a post that the U.S. Commodity Futures Trading Commission (CFTC) has approved Coinbase Clearing LLC’s registration as a Derivatives Clearing Organization (DCO). Coinbase said the firm is the first clearinghouse to use USDC as a native collateral asset, and will support USDC collateral and 24-hour nonstop settlement.
More notably, with this approval, Coinbase now has futures commission merchant Coinbase Financial Markets, designated contract market Coinbase Derivatives, and the derivatives clearing organization Coinbase Clearing, forming CFTC-regulated derivatives infrastructure covering the brokerage, trading, and clearing stages. Coinbase Clearing will also support the direct creation and settlement of fully margined contracts to speed up product development and improve operational efficiency; meanwhile, the margin derivatives business and the soon-to-be-launched single-stock perpetual contracts will still receive partial support from existing partners.
One observation is that once clearing, trading, and brokerage are connected, the rollout path for regulated products will be more complete. Another observation is that with USDC appearing as a native collateral asset at the clearing level, the market will pay more attention to its practical role in settlement efficiency and product expansion. Which do you care more about—the end-to-end closure of Coinbase’s infrastructure, or the new role USDC plays here?
Figure 1: Coinbase clearing business officially approved by the CFTC, to support USDC collateral and 24/7 settlement · Source page partial screenshot
Image source: https://www.theblockbeats.info/flash/369437
This time, Coinbase wasn’t approved as a single point approval, but rather one piece at a time in building out the derivatives base.
BlockBeats September 29 reports that Coinbase said in a post that the U.S. Commodity Futures Trading Commission (CFTC) has approved Coinbase Clearing LLC’s registration as a Derivatives Clearing Organization (DCO). Coinbase said the firm is the first clearinghouse to use USDC as a native collateral asset, and will support USDC collateral and 24-hour nonstop settlement.
More notably, with this approval, Coinbase now has futures commission merchant Coinbase Financial Markets, designated contract market Coinbase Derivatives, and the derivatives clearing organization Coinbase Clearing, forming CFTC-regulated derivatives infrastructure covering the brokerage, trading, and clearing stages. Coinbase Clearing will also support the direct creation and settlement of fully margined contracts to speed up product development and improve operational efficiency; meanwhile, the margin derivatives business and the soon-to-be-launched single-stock perpetual contracts will still receive partial support from existing partners.
One observation is that once clearing, trading, and brokerage are connected, the rollout path for regulated products will be more complete. Another observation is that with USDC appearing as a native collateral asset at the clearing level, the market will pay more attention to its practical role in settlement efficiency and product expansion. Which do you care more about—the end-to-end closure of Coinbase’s infrastructure, or the new role USDC plays here?
Figure 1: Coinbase clearing business officially approved by the CFTC, to support USDC collateral and 24/7 settlement · Source page partial screenshot
Image source: https://www.theblockbeats.info/flash/369437
