Coinbase Gets CFTC Nod for In-House Clearinghouse with USDC Focus

Coinbase has made significant strides in its derivatives offering by gaining approval from the Commodity Futures Trading Commission (CFTC) to operate its own clearinghouse. The CFTC registered Coinbase Clearing LLC as a Derivatives Clearing Organization on September 28, allowing it to clear fully collateralized futures, options on futures, and swaps.

The new clearinghouse will use USDC collateral and support 24/7 settlement, fitting the always-on trading model common in crypto. This means that Coinbase can now offer regulated derivatives through its exchange and brokerage infrastructure without relying on external clearing infrastructure.

This development marks a significant milestone for Coinbase as it attempts to assemble an end-to-end derivatives stack within the US regulatory framework. The company now has three separate regulated components covering derivatives: Coinbase Derivatives LLC, which operates as a designated contract market; Coinbase Financial Markets, which serves as a futures commission merchant; and Coinbase Clearing LLC.