Blockchain native assets are emerging in the derivation market

The cryptocurrency trading sector is undergoing a significant transformation. An increasing number of platforms are beginning to adopt blockchain-native stablecoins such as USDC and innovative financial instruments like tokenized government bonds as collateral for derivative trading. These assets not only possess stability but also offer returns, while complying with regulatory requirements, making them highly attractive to institutional investors seeking capital efficiency.

Recently, a well-known cryptocurrency 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 gained such qualification in the U.S. futures market. The platform stated that it will work closely with regulators to promote the implementation of this innovation. This business will be operated by a qualified custodian regulated by the New York Department of Financial Services.

At the same time, tokenized government bonds are gradually emerging in the derivation market. A digital asset company recently announced that a dollar institutional digital liquidity fund (BUIDL) launched by a large asset management company can now be used as collateral on multiple cryptocurrency trading platforms. This token represents a short-term revenue fund supported by cash and U.S. Treasury bonds, with assets under management reaching $2.9 billion. By accepting BUIDL as margin, these platforms allow institutional traders to obtain additional income while engaging in leveraged trading.

These developments signify that the market structure is shifting towards a more efficient and transparent direction. Industry insiders point out that assets like USDC can achieve near real-time settlement and are widely recognized across various trading platforms. At the same time, tokenized government bonds are being actively applied by some leading trading venues to enhance capital efficiency and risk management.

It is worth noting that these measures align with the suggestions made by CFTC acting chair Caroline D. Pham last November. She called on companies to explore the use of distributed ledger technology for non-cash collateral. Pham believes that, given the success of asset tokenization in various fields, such as the issuance of digital government bonds in the Eurasian region, large-scale repurchase agreements between institutions, and payment transactions, adopting these new technologies will not undermine market integrity.

As blockchain technology continues to be applied in the financial sector, we can foresee that more innovative financial instruments will emerge in the derivation market in the future, providing investors with more choices while driving the entire industry towards a more efficient and transparent direction.