Coinbase Gains CFTC Approval for Derivatives Clearing Organization

Coinbase, a leading US cryptocurrency exchange, has received approval from the US Commodity Futures Trading Commission (CFTC) to operate as a derivatives clearing organization (DCO).

The CFTC approval, granted this week, allows Coinbase to directly clear fully collateralized futures, options on futures, and swaps. This means that Coinbase can now manage the settlement and clearing process for these derivatives without relying on third-party clearinghouses.

According to DeFi Rate, the DCO approval provides Coinbase with a foundation to expand its derivatives business. The company had previously announced plans to launch futures products using the dollar-denominated stablecoin USDC as collateral, in partnership with clearinghouse Nodal Clear.