“Tokenized Markets Are the Future”: CFTC Paves Way for Stablecoin Collateral

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Declaring “tokenized markets are here, and they are the future,” the CFTC is moving to integrate digital assets into the core of the financial system.

A new initiative from the agency seeks to allow stablecoins to be used as collateral in regulated derivatives markets, a significant step toward merging traditional finance with blockchain technology.

Acting Chair Caroline Pham, who has long touted collateral management as the “killer app” for stablecoins, announced the proposal and opened a comment period until October 20.

The move is backed by the recent GENIUS Act and has received immediate approval from key industry players like Circle, Tether, Ripple, Coinbase, and Crypto.com, who see it as a validation of digital assets’ role in modern finance.