Crypto.com obtained a margined derivatives license in the United States after the U.S. Commodity Futures Trading Commission (CFTC) gave it the green light. The derivatives firm is now approved “to offer cleared margined derivatives on cryptocurrencies and other asset classes”, in addition to the collateralized derivatives it was already offering, after obtaining the CFTC license.
A CFTC-registered exchange and clearinghouse and an affiliate of Crypto.com Crypto.com | Derivatives North America (CDNA) received approval from the U.S. CFTC, an independent federal agency that regulates U.S. derivatives markets. CDNA received the rights to offer margined derivatives after there was an amendment to its already existing derivatives clearinghouse organization (DCO) license.
“The full stack of CFTC-approved derivatives licenses allows Crypto.com to seamlessly provide clients with the most comprehensive and integrated derivatives experience, alongside Crypto.com’s additional product offerings, including spot markets, prediction markets, stocks, qualified custody, credit and debit cards, and more,” said Kris Marszalek, Co-Founder and CEO of Crypto.com.
Following a discussion with the CFTC in 2023, CDNA submitted a request to the regulatory body, asking it to amend its DCO. Thereafter, the CDNA provided extensive documentation and performed multiple trading and clearing system demos, according to a request by CFTC Staff.
Steve Humenik, Head of Clearing for CDNA, stated, “We want to thank Acting Chairman Caroline D. Pham for her extraordinary leadership in delivering on the promise she made to get ‘back to basics’ and move forward with approvals that had been languishing before her tenure. ”
What are margined derivatives?
Margin derivatives are financial instruments that combine derivatives trading (like futures, options, or swaps) with the use of margin (borrowed capital). They allow traders to gain exposure to an asset or hedge risk while only putting up a fraction of the total value of the contract as collateral.
