Improvement in Collateral Efficiency in the Derivation Market: Blockchain Assets in Favor

With the continuous development of the cryptocurrency field, more and more trading platforms are beginning to use blockchain native assets as collateral to improve the efficiency of the derivation market. Among them, stablecoins such as USDC and tokenized government bonds are favored by institutional participants due to their stability, profitability, and compliance.

Recently, a well-known cryptocurrency derivation 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's CEO stated that they will work closely with the CFTC to promote the implementation of this initiative.

This move will be implemented with the support of a qualified custodian regulated by the New York Department of Financial Services. This not only reflects the recognition of regulatory agencies towards crypto assets but also provides more options for market participants.

At the same time, tokenized government bonds are also emerging in the derivation market. A digital asset company recently announced that the dollar institutional digital liquidity fund (BUIDL) of a well-known asset management company can now be used as collateral on multiple cryptocurrency exchanges. This token represents a short-term yield fund backed by cash and U.S. government bonds, with assets under management reaching $2.9 billion.

By accepting BUIDL as collateral, these platforms enable institutional traders to engage in leveraged trading while also earning additional returns. This innovative approach not only enhances capital efficiency but also provides investors with new profit avenues.

These latest developments indicate that the market structure is shifting towards greater efficiency and transparency. Industry insiders point out that assets like USDC can achieve almost instant settlement and are widely recognized across various trading platforms. At the same time, tokenized government bonds are actively being used by some advanced trading venues to enhance capital efficiency and risk management.

It is worth noting that these measures are also consistent with the attitude of regulatory authorities. The acting chair of the CFTC urged companies last November to explore the use of distributed ledger technology for non-cash Collateral. She believes that, considering the successful and mature business cases of asset tokenization, such as the issuance of digital government bonds in the Eurasian region and large-scale institutional repurchase and payment transactions on corporate Blockchain platforms, adopting these new technologies will not harm market integrity.

Overall, the application of blockchain native assets in the derivation market is bringing new opportunities and challenges to the entire financial ecosystem. As the regulatory environment becomes clearer and technology continues to advance, we can expect to see more innovative financial products and services emerge in this field.