U.S. CFTC Approves Stablecoins as Collateral for Derivative Trades

On the 23rd, Acting Chair Caroline Pham of the U.S. Commodity Futures Trading Commission (CFTC) announced the introduction of a system that allows the use of tokenized collateral, including stablecoins, in the derivatives market. This system is implemented as part of the recommendations from the Digital Asset Market report by the President's Working Group, following discussions at the CFTC's Cryptocurrency CEO Forum in February. Ms. Pham stated that 'collateral management is the killer app for the stablecoin market,' explaining that modernizing collateral management through blockchain technology and improving capital efficiency will spur the development of the derivatives market. The CFTC will address evaluation, custody, settlement, and regulatory amendments...