Coinbase Wins CFTC Approval for Its Own Clearinghouse

Coinbase's derivatives infrastructure is now complete after the US Commodity Futures Trading Commission (CFTC) approved its application for Coinbase Clearing LLC, a registered derivatives clearinghouse. This approval gives Coinbase the final piece of its regulated derivatives stack.

The exchange now has all three components: an FCM through Coinbase Financial Markets, a DCM through Coinbase Derivatives, and a registered DCO through Coinbase Clearing. With this infrastructure in place, Coinbase can create and settle fully collateralized contracts directly using USDC as collateral with 24/7 settlement.

Coinbase General Counsel Molly Abraham stated that the CFTC's approval completes its end-to-end derivatives infrastructure, enabling it to bring more regulated derivatives products to market. The company will continue to rely on existing partners for certain products, including margined derivatives business and upcoming single stock perps launch.