Cryptocurrency exchange Coinbase has secured approval from the Commodity Futures Trading Commission (CFTC) to establish its own Derivatives Clearing Organization (DCO).
Reports on Tuesday indicate that the CFTC has given the green light to Coinbase Clearing LLC as a DCO. This approval adds to Coinbase’s existing licenses as a futures commission merchant (FCM) and designated contract market (DCM), completing its trifecta of regulatory clearances.
With this latest development, Coinbase has now built a comprehensive infrastructure within the CFTC’s regulatory framework. This allows the company to independently manage the entire lifecycle of derivatives, from issuance to trading and clearing.
The newly approved clearinghouse will offer 24/7 real-time settlements using USDC, a dollar-pegged stablecoin. Looking ahead, Coinbase aims to accelerate its product offerings, with plans to introduce new derivatives such as perpetual futures on individual stocks.