Coinbase Expands Derivatives Reach with CFTC Approval

Coinbase has taken another significant step in its expansion into derivatives trading by registering Coinbase Clearing LLC as a derivatives clearing organization. This move completes a set of three federal licenses that allow the exchange to manage futures trading from end to end, without relying on third parties.

The CFTC approval enables Coinbase to operate its own clearing chain and settle contracts with USDC (USD Coin) as collateral around the clock. The company has described this new entity as the first native clearing house in USDC, capable of accepting stablecoin as collateral and settling operations 24/7.

This is a significant development for Coinbase, which aims to provide an end-to-end derivatives infrastructure. According to the company's general counsel, Molly Abraham, 'this completes the end-to-end derivatives infrastructure' of the exchange. The new entity will operate exclusively on fully collateralized contracts, while margin contracts and perpetual futures on individual stocks will continue to be settled through current partners.

Coinbase has been actively expanding its derivatives offerings in recent months. In August, it incorporated tokenized stocks on Base for users outside the US. Last week, it launched fixed-rate USDC loans backed by Bitcoin alongside Morpho. The company's deepening of its agreement with Citi will also allow institutional clients to accept stablecoin payments.