Coinbase Gets CFTC Nod for Derivatives Clearing Organization License

Coinbase, a US-based cryptocurrency exchange, has received approval from the US Commodity Futures Trading Commission (CFTC) for a derivatives clearing organization (DCO) license.

The approval allows Coinbase to directly clear fully collateralized futures, options on futures, and swaps. This means the company can now facilitate the clearing of 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 collaboration with clearinghouse Nodal Clear.

The approval does not authorize any specific derivatives or prediction-market products, and the underlying assets tied to them will depend on each product and applicable regulations.