Blockchain-native assets like USDC and tokenized treasuries such as BlackRock’s BUIDL are gaining traction among crypto trading platforms aiming to improve collateral efficiency in derivatives markets.
Institutional investors increasingly turn to these instruments for capital optimization, as they combine stability, yield potential, and regulatory compliance in a single package.
USDC and BUIDL Drive Growth in Crypto Derivatives Market
On June 18, Coinbase Derivatives announced that, pending approval from the Commodity Futures Trading Commission (CFTC), margined futures contracts would begin accepting USDC as eligible collateral.
This is the first time we’ll see USDC used as collateral in US futures markets – and we will work closely with the CFTC to make this happen.
Coinbase CEO Brian Armstrong said:
Coinbase Custody Trust, a Qualified Custodian regulated by the New York Department of Financial Services, will facilitate the stablecoin integration.
In a separate advancement, market participants are increasingly focusing on tokenized treasuries within the derivatives market.
On the same day, digital asset company Securitize announced that Crypto.com and Deribit now accept BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) as collateral.
The token, backed by U.S. Treasuries and cash, serves as a short-duration income-generating fund and holds $2.9 billion in assets under management.
By allowing BUIDL to serve as margin, the platforms enable institutional investors to generate returns on their deployed capital while using it to maintain leveraged trading positions.
Why Are Investors Flocking to These Digital Assets?
Furthermore, these recent changes emphasize the ongoing trend and signal a major transition toward market structures that prioritize greater capital efficiency and enhanced transparency.
Coinbase pointed out that assets like USDC settle almost instantly and are widely known and used in both centralized and decentralized systems.
Tokenized Treasuries are being actively used to improve capital efficiency and risk management across some of the industry’s most sophisticated trading venues, while still offering yield.
Carlos Domingo, Co-Founder and CEO of Securitize, also echoed this view by saying:
Moreover, these developments align with the November 2024 recommendation made by CFTC Acting Chairman Caroline D. Pham, who encouraged firms to explore distributed ledger technology for deploying non-cash collateral solutions.
She stressed that using new technologies would not harm the fairness of the market. Her confidence comes from proven real-world examples, such as digital government bond sales in Europe and Asia, large-scale trading and payment deals worth over $1.5 trillion on business blockchain systems, and better ways to manage collateral and treasury operations.
