Coinbase Obtains CFTC Approval for US Derivatives Clearing House - TradingView
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Coinbase has received approval from the Commodity Futures Trading Commission (CFTC) to launch Coinbase Clearing LLC, its own US derivatives clearing organization. The registration became effective on Monday, authorizing the clearing house to clear futures contracts, options on futures contracts, and fully collateralized swaps, although it does not authorize it to clear its leveraged products. "Today's CFTC approval completes Coinbase's end-to-end derivatives infrastructure, allowing us to launch more regulated derivatives products with native USDC collateral and 24/7 settlement," said Molly Abraham, Coinbase's Chief Legal Officer.This approval gives Coinbase control over another key element of its derivatives business, alongside its existing futures broker, Coinbase Financial Markets Inc., and its exchange platform, Coinbase Derivatives LLC. It also marks a new step in Coinbase's expansion, moving from a crypto trading platform to a financial market infrastructure provider.A derivatives clearing organization stands between the buyer and seller in a derivatives transaction and helps manage settlement as well as counterparty risk, particularly in the event of default by one of the parties. Through its derivatives exchange platform, Coinbase offers regulated futures contracts in the United States linked to cryptocurrencies such as Bitcoin and Ether, as well as futures contracts...
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