Coinbase can now settle derivatives 24/7 with USDC
By Olivia Stephanie from crypto.news
What the CFTC approved
The U.S. Commodity Futures Trading Commission has registered Coinbase Clearing LLC as a derivatives clearing organization. The approval gives Coinbase an in-house clearing operation for fully collateralized futures, options on futures and swaps, complementing its regulated exchange and brokerage businesses.
Coinbase says the clearinghouse will use USDC as collateral and support settlement around the clock. Because USDC is designed to track the U.S. dollar and can move outside traditional banking hours, the company says it can support continuous funding and settlement for eligible contracts.
What remains outside the approval
The registration is limited to fully collateralized products; it does not authorize Coinbase Clearing to handle the company’s margined derivatives business. Coinbase has not announced which contracts will move to the new clearinghouse or when its first contract will be processed.
Coinbase also says external partners will continue to support parts of its margined derivatives operation, including planned stock-linked perpetual contracts. Those products have separate regulatory requirements, so the new registration does not by itself approve their launch.
Source : https://crypto.news/coinbase-can-now-settle-derivatives-24-7-with-usdc/
