Coinbase Wins CFTC Approval for 24/7 USDC Derivatives Clearing

Coinbase has completed a major U.S. derivatives facility expansion following the Commodity Futures Trading Commission’s approval of Coinbase Clearing LLC as a Derivatives Clearing Organization.

The Sept. 28 approval would allow the new company to clear fully secured commodity futures and options contracts and commodity swaps within Coinbase’s existing regulated commodities business.

The new registration establishes three related Coinbase companies with different roles in the U.S. derivatives industry. Coinbase Financial Markets is a Futures Commission Merchant, Coinbase Derivatives is a Designated Contract Market, and Coinbase Clearing offers clearing services for products for which it is registered. 

According to Coinbase, the registered businesses allow the company to offer fully integrated services for trading regulated derivative products.

A key component of the new clearinghouse is the use of USDC▼$0.9998 as a settlement currency. Coinbase states that Coinbase Clearing is the first USDC-native clearinghouse and that customers will be able to settle trades around the clock.

The CFTC registry lists the DCO and confirms that it has the authority to clear fully collateralized products. The CFTC doesn’t use the phrase “first USDC-native” in its own materials about Coinbase. USDC issued by Circle is a dollar-pegged currency that can be traded outside normal banking hours.