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CFTC Launches Pilot Program Allowing Tokenized Assets as Collateral in U.S. Derivatives Markets

CFTC Launches Pilot Program Allowing Tokenized Assets as Collateral in U.S. Derivatives Markets

CryptonewslandCryptonewsland2025/12/09 14:27
By:by Austin Mwendia
  • CFTC allows tokenized assets as collateral in US derivatives markets under strict oversight.
  • Weekly reporting and operational checks ensure safe use of crypto and tokenized real-world assets.
  • The pilot aims to attract institutional investors and reduce reliance on offshore crypto platforms.

The Commodity Futures Trading Commission (CFTC) has started a pilot program allowing tokenized assets in U.S. derivatives markets. The initiative covers Bitcoin, Ethereum, USDC, and tokenized real-world assets. 

Acting CFTC Chairman Caroline Pham announced the launch of a digital-assets collateral pilot program allowing BTC, ETH, and USDC to be used in U.S. derivatives markets, alongside new guidance for tokenized collateral. MPD also withdrew Staff Advisory 20-34, stating that…

— Wu Blockchain (@WuBlockchain) December 8, 2025

CFTC allows registered futures commission merchants (FCMs) to treat these digital assets as margin collateral. Acting Chair Caroline Pham stressed that the program will introduce crypto activity into regulation of U.S. regulated markets, lessening the exposure to offshore exchanges.

Structured Oversight and Reporting Requirements

The program requires FCMs to provide weekly reports on assets held in customer accounts. Firms must also disclose operational issues promptly. The CFTC updated guidance confirming its rules are technology-neutral. 

Tokenized Treasuries, money-market funds, and other real-world assets can qualify as collateral if custody and valuation controls are strong. The agency withdrew Staff Advisory 20-34, noting it no longer reflects market realities after the GENIUS Act and advances in tokenization. Removing the advisory lifts previous restrictions on holding digital assets as collateral.

Controlled Testing and Market Impact

The pilot builds on the CFTC’s crypto sprint initiative and Digital Asset Markets Subcommittee recommendations. It tests operational resilience, collateral handling, and market impact in a controlled environment. Bitcoin, Ethereum, and USDC will serve as collateral during the first three months. 

The program creates a formal pathway for tokenized assets, including stablecoins and tokenized Treasuries, within the U.S. derivatives market. Regulators want to have tokenized collateral and 24/7 settlement integrated into the same framework with the conventional futures. US regulators recently approved spot crypto trading on futures exchanges and extended federal oversight to major digital assets.

Industry Response and Broader Implications

The leaders of the industry praised the initiative since it enhances the speed and security of settlement. The companies emphasized the fact that the program can provide U.S. firms with regulatory transparency enjoyed by other countries. Tokenized collateral may enhance capital efficiency and enable wider use of money-market funds and institutional stablecoins. 

The announcement comes days before major banks meet senators to discuss crypto legislation. In October, the Senate announced plans to release the crypto market bill to clarify digital asset rules. The SEC also closed its multi-year inquiry into tokenized RWA issuer Ondo Finance, reducing uncertainty for the sector. Analysts suggest the program could increase liquidity, attract institutional investors, and stabilize markets through standardized reporting and operational safeguards.

The CFTC’s pilot marks a shift toward bridging traditional finance with digital asset markets. By allowing tokenized assets as collateral, the program may encourage more crypto firms to operate under U.S. regulation rather than overseas.

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