The rise of blockchain assets USDC and BUIDL lead the innovation of collateral in the derivatives market.

The Application Trends of Blockchain Assets as Collateral in the Derivation Market

With the development of the cryptocurrency market, more and more trading platforms are beginning to use blockchain native assets as collateral to enhance the efficiency of the derivation market. Among them, stablecoins such as USDC and tokenized government bonds like BlackRock's BUIDL are favored by institutional participants due to their stability, yield, and compliance.

Recently, a large cryptocurrency exchange platform announced that after obtaining approval from the U.S. Commodity Futures Trading Commission (CFTC), USDC will be accepted as collateral for margin futures. This marks the first time USDC has been used as collateral in the U.S. futures market. The platform will work closely with the CFTC to promote the implementation of this innovation. This initiative will be implemented through a qualified custody institution regulated by the New York Department of Financial Services.

USDC becomes the first to qualify as a Collateral for U.S. futures, Coinbase partners with CFTC to promote implementation

At the same time, tokenized national bonds are gradually gaining attention in the derivation market. Digital asset company Securitize recently announced that BlackRock's dollar institutional digital liquidity fund (BUIDL) can now be used as collateral on multiple cryptocurrency trading platforms. BUIDL represents a short-term income fund backed by cash and U.S. Treasury bonds, currently managing assets totaling $2.9 billion. By accepting BUIDL as margin, these platforms enable institutional traders to earn additional returns while engaging in leveraged trading.

These developments signify that the market structure is shifting towards greater capital efficiency and transparency. Industry insiders point out that assets like USDC can achieve almost instant settlement and are widely recognized on both centralized and decentralized platforms. Executives at Securitize also stated that tokenized government bonds are being actively used in some advanced trading venues to enhance capital efficiency and risk management levels, while still providing returns.

These measures also echo the recommendations made by CFTC acting chair Caroline D. Pham in November 2024. She encouraged companies to explore the use of distributed ledger technology for non-cash Collateral, believing it would not undermine market integrity. Pham pointed out that asset tokenization already has successful and mature business cases, such as the issuance of digital government bonds in the Eurasian region, large-scale institutional repurchase and payment transactions on corporate Blockchain platforms, and so on.

With the advancement of these innovations, we can foresee that Blockchain technology will play an increasingly important role in the financial markets, bringing greater efficiency and more opportunities to market participants.

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Rekt_Recoveryvip
· 08-14 04:20
got rekt so many times but still bullish af on usdc collateral... this hits different
Reply0
WhaleWatchervip
· 08-13 20:22
Still struggling with USDC, this market is collateralizing everything.
View OriginalReply0
MetaverseHobovip
· 08-13 20:22
The CFTC has made a big move this time.
View OriginalReply0
SmartContractWorkervip
· 08-13 20:21
Laughing to death, I want to use USDC for trading futures.
View OriginalReply0
CountdownToBrokevip
· 08-13 20:01
The stablecoin approval process is too complicated, right?
View OriginalReply0
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