The application of blockchain native assets as collateral in the derivation market is becoming increasingly widespread

More and more cryptocurrency trading platforms are beginning to use stablecoins like USDC and tokenized government bonds as collateral in the derivation market to improve market efficiency. These tools combine stability, profitability, and compliance, making them highly attractive to institutional investors seeking capital optimization.

Recently, a well-known trading platform announced that after obtaining approval from the U.S. Commodity Futures Trading Commission (CFTC), USDC will be accepted as collateral for margin futures. This marks the first time USDC has been used as collateral in the U.S. futures market. The platform stated it will work closely with the CFTC to promote the implementation of this innovation. This integration will rely on qualified custodians regulated by the New York Department of Financial Services.

At the same time, tokenized government bonds are gradually gaining attention in the derivation market. A digital asset company recently announced that a large asset management company's USD institutional digital liquidity fund (BUIDL) can now be used as collateral on multiple cryptocurrency trading platforms. This token represents a short-term yield fund backed by cash and U.S. Treasury bonds, currently managing assets totaling $2.9 billion. By accepting BUIDL as margin, these platforms enable institutional traders to earn additional returns while leveraging their funds for trading.

These latest developments highlight that the market structure is undergoing a significant transformation towards higher capital efficiency and greater transparency. Industry insiders point out that assets like USDC can achieve almost instantaneous settlement and are widely recognized on both centralized and decentralized platforms. Experts indicate that tokenized government bonds are actively being used in some industry-leading trading venues to enhance capital efficiency and risk management levels, while still providing returns.

These measures also echo the recommendations made by CFTC Acting Chair Caroline D. Pham in November 2024. She encourages companies to explore the use of distributed ledger technology for non-cash collateral, believing that given the successful and mature business cases for asset tokenization, adopting these new technologies will not harm market integrity. These cases include the issuance of digital government bonds in the Eurasian region, institutional repurchase and payment transactions with a nominal scale of over $1.5 trillion on corporate blockchain platforms, and more efficient collateral and fund management.

With the continuous development of blockchain technology and the gradual clarification of the regulatory environment, we can foresee that more innovative financial instruments will play an important role in the derivation market, bringing greater efficiency and flexibility to the market.