The encryption asset trading platform adopts a new type of collateral to improve efficiency

More and more encryption asset trading platforms are beginning to use blockchain-native assets as Collateral to improve the efficiency of the derivatives market. These new types of Collateral include stablecoins like USDC and products such as tokenized government bonds launched by certain asset management companies, which possess stability, yield, and compliance, making them highly attractive to institutional investors seeking capital optimization.

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

At the same time, tokenized government bonds are also emerging in the derivatives market. A digital asset company recently announced that a dollar-denominated digital liquidity fund launched by a large asset management company can now be used as collateral on two well-known encryption trading platforms. This fund represents a short-term yield product backed by cash and U.S. government bonds, and it currently manages assets totaling $2.9 billion. By accepting such tokenized government bonds as margin, these platforms enable institutional traders to achieve additional returns while engaging in leveraged trading.

These latest developments reflect that the market structure is evolving towards greater efficiency and transparency. Industry insiders point out that assets like USDC can achieve near-instant settlement and are widely recognized on both centralized and decentralized platforms. At the same time, tokenized government bonds are being actively used by some leading trading venues to enhance capital efficiency and risk management levels, while also providing yields for investors.

These measures also echo the suggestions made by CFTC Acting Chair Caroline D. Pham last November. She encouraged companies to explore applying distributed ledger technology to non-cash Collateral and believes that, considering the successful and mature business cases of asset tokenization, adopting these new technologies will not harm market integrity.

Overall, the trend of cryptocurrency trading platforms adopting new types of Collateral signifies that the market is moving towards a more efficient and flexible direction, which will provide more opportunities for institutional investors and also bring new driving forces for the entire industry.