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Coinbase gets CFTC approval for its derivatives clearinghouse
The CFTC registered Coinbase Clearing LLC to clear fully collateralized futures, options on futures, and swaps.
Coinbase has secured CFTC approval for its own derivatives clearinghouse, completing what it describes as a vertically integrated US trading stack, according to CryptoSlate.
On Sept. 28, the regulator registered Coinbase Clearing LLC as a derivatives clearing organization, authorizing the unit to clear fully collateralized futures, options on futures, and swaps. Coinbase said the approval shifts clearing away from outside partners that the business previously relied on.
The exchange also operates the other layers of the regulated US derivatives market, including Coinbase Financial Markets as a futures commission merchant and Coinbase Derivatives as a designated contract market. Together, the structure gives Coinbase end-to-end infrastructure to bring regulated products to market, CryptoSlate reported.
CryptoSlate noted the clearinghouse launch covers a narrower scope than Coinbase’s broader derivatives buildout, and that the clearing unit can create and settle fully collateralized contracts, with Coinbase pitching USDC collateral and 24-hour settlement as advantages for products designed for always-on markets.