Coinbase Clearing Gets US Approval for Fully Collateralized Derivatives

The US Commodity Futures Trading Commission (CFTC) has approved Coinbase Clearing LLC as a derivatives clearing organization, allowing it to clear fully collateralized contracts. This approval was issued on September 28 and permits Coinbase Clearing to clear futures, options on futures, and swaps.

Under the regulatory definition, a fully collateralized position requires the clearinghouse to hold enough funds to cover the maximum possible loss when the contract ends or is liquidated.

As a derivatives clearing organization, Coinbase Clearing will stand between trading parties to manage obligations after a trade. The CFTC's public register lists Coinbase Clearing as registered on September 28, with the same product limits stated in the order.