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Coinbase Derivatives is broadening its collaboration with clearinghouse Nodal Clear to introduce Circle’s USDC stablecoin into US futures markets as permissible collateral.
On Wednesday, the firms declared that USDC will now be recognized as collateral for margined futures trading, a strategy intended to bolster stablecoin adoption within regulated derivatives markets.
The integration awaits approval by the Commodity Futures Trading Commission (CFTC), with Coinbase Derivatives and Nodal Clear collaborating with the agency to introduce USDC to the US futures market.
“This is anticipated to be the inaugural regulated application of USDC as collateral and will utilize Coinbase Custody Trust as the custodian,” Coinbase Derivatives stated in the announcement.
“A genuine cash equivalent”
Coinbase Derivatives and Nodal Clear aim for USDC’s introduction as an allowable collateral for US futures by 2026.
Nodal Clear, a derivatives clearing organization regulated by the CFTC, is affiliated with EEX Group, which is part of the German multinational company Deutsche Börse. Coinbase Derivatives is also a designated contract market registered with the CFTC that lists derivatives contracts based on an underlying commodity.
“This will signify an important milestone in our endeavor to establish USDC as a genuine cash equivalent, while also providing enhanced efficiency through nearly instantaneous money transfers and secure custody,” Coinbase Derivatives highlighted in the announcement, emphasizing the stablecoin’s reliability, operational benefits, and increasing acceptance in conventional financial markets.
Nodal initiated clearing for Coinbase Derivatives in May
The recently announced USDC collateral initiative is not the first collaboration between Coinbase and Nodal Clear.
In May, Nodal Clear commenced offering support for the trading of select cryptocurrency futures contracts on Coinbase Derivatives Exchange (CDE), such as Bitcoin Futures (BTI), Ether Futures (ETI), nano Bitcoin Futures (BIT), and nano Ether Futures (ET).
Related: JPMorgan to accept crypto ETFs as collateral for loans — Report
“Collaborating with Coinbase Derivatives, we are eager to advance our partnership and introduce innovations to the industry, such as our launch of the first 24×7 margined futures in May 2025,” remarked Nodal Clear chairman and CEO Paul Cusenza. He added:
“The plans to incorporate USDC as collateral reflect our ongoing dedication to responding to market requirements and innovating. We are enthusiastic about engaging with our clearing members and the CFTC to make this a reality.”
This announcement follows the recent news that USDC issuer Circle went public on the New York Stock Exchange on June 5, with its CRCL shares commencing trading at $69.
Circle’s USDC partner, Coinbase (COIN), has already been publicly traded for over four years since its Nasdaq debut in April 2021.
Magazine: Crypto sought to topple banks, now it’s becoming them in the stablecoin contest
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