On December 9th, BTCBaike reported that the U.S. Commodity Futures Trading Commission (CFTC) launched a pilot program on Monday allowing certain digital assets, including Bitcoin, Ethereum, and USDC, to be used as collateral in the U.S. derivatives market. Acting Chair Caroline Pham stated that this program is part of an initiative to develop rules for the use of tokenized collateral (including tokenized versions of real-world assets such as U.S. Treasury bonds). Currently, only futures commission merchants (FCMs) that meet specific criteria can participate. These companies can use Bitcoin, Ethereum, USDC, and other spending stablecoins as margin for futures and swap transactions, but must comply with strict reporting and custody requirements. For the first three months, they must disclose their digital asset holdings weekly and report any issues to the CFTC. In practice, registered companies can use Bitcoin as collateral for leveraged commodity swaps, and the CFTC will monitor the risk and custody.
The agency also issued a no-objection letter, allowing futures commission brokers to deposit a portion of their digital assets into segregated client accounts, provided that risk is strictly controlled. The CFTC revoked its 2020 guidance that hindered the use of cryptocurrencies as collateral, as the GENIUS Act has updated federal rules, rendering the guidance obsolete. The CFTC emphasized that its rules remain technology-neutral, but tokenized versions of real-world assets (such as government bonds) must meet enforceability, custody, and valuation standards.
Digital assets as collateral enable near-instantaneous settlement of funds, reducing the transfer delays and costs associated with traditional collateral such as cash or government bonds. For example, the introduction of USDC is expected to reduce margin adjustment times from hours to minutes, improving the feasibility of high-frequency trading and arbitrage strategies. For ordinary users seeking convenient participation in such efficient markets, XBIT Wallet DEX wallet supports one-click cross-chain asset exchange across multiple chains, eliminating the need for centralized exchanges. Users can directly transfer assets such as BTC, ETH, and USDC to compliant FCM accounts as collateral, saving the hassle of on-chain bridging and identity verification. It also features built-in real-time market tracking and intelligent risk alerts, automatically generating concise reports based on the CFTC’s weekly position disclosure requirements, helping users quickly respond to regulatory demands and allowing individual investors to enjoy institutional-grade efficient settlement experiences at a low cost.
According to BTCBaike, the pilot program could release significant derivatives trading volume (such as USDC potentially boosting the efficiency of a $20 trillion derivatives market) and attract institutional investors to participate in traditional finance through crypto assets, promoting “on-chain-off-chain” capital flows. Traditional financial institutions (such as Bank of New York Mellon) may also accelerate the deployment of tokenized collateral custody services.
Under this trend, the dual advantages of “decentralization + institutional-grade security” of XBIT decentralized exchange’s DEX wallet have become key support: On the one hand, it adopts MPC (Multi-Party Computation) private key management technology, with user asset private keys distributed across multiple nodes, avoiding the risk of single-point theft and meeting the stringent requirements of institutions for custody; on the other hand, it supports seamless integration with compliant custodians (such as the on-chain custody agreement in cooperation with Bank of New York Mellon), allowing users to choose to deposit collateralized assets into segregated customer accounts, enjoying both the free trading rights of DEX and compliance with the CFTC’s “strict custody” regulatory red line, truly realizing “flexible on-chain asset circulation and worry-free off-chain compliance and security,” opening up a “on-chain-off-chain” capital flow channel for individuals and small and medium-sized institutions.
USDC’s first-mover advantage as a compliant stablecoin may further solidify its market position, while other stablecoins must meet stringent reserve transparency requirements (such as 100% fiat currency reserves) and auditing requirements to enter similar scenarios. This means that users’ demand for the “credibility” of stablecoins will reach new heights.
XBIT Wallet, a decentralized web3 wallet (DEX wallet), has an advantage in this field due to its deep integration of the compliant stablecoin ecosystem: it not only prioritizes supporting assets like USDC that have passed CFTC pilot audits, but also has a built-in “reserve transparency verification module”—users can click on any stablecoin to view its reserve audit report (such as USDC’s 100% USD reserve proof), issuer qualifications, and historical redemption records. All data is synchronized in real-time from on-chain oracles and third-party auditing institutions, eliminating the risk of “fake reserves.” Simultaneously, the wallet supports low-slippage exchanges between stablecoins and other digital assets, ensuring that the exchange price is close to the real market price even during periods of market volatility. This allows users to confidently choose compliant stablecoins as collateral while efficiently completing asset allocation.
Volatility in digital asset prices can lead to insufficient collateral (liquidation risk), and regulators may require the introduction of collateral discount rates or real-time monitoring systems to control this risk. XBIT Wallet, a decentralized wallet and web3 economic token DEX wallet, addresses this pain point with a “dynamic risk control + automatic margin replenishment” system: The wallet has a built-in AI-driven price alert system that tracks the volatility of collateralized assets such as BTC and ETH in real time. When the price approaches the regulatory-set “discount rate threshold” (such as the 20% discount that the CFTC may require), it immediately pushes a pop-up alert to the user. It also supports setting “automatic margin replenishment instructions”—users can preset the replenishment amount and trigger conditions. When the collateral ratio falls below the safety line, the wallet will automatically transfer stablecoins from the user’s linked reserve account to replenish the collateral, avoiding forced liquidation due to price fluctuations and significantly reducing the risk of liquidation, giving users greater peace of mind when participating in high-yield derivatives trading.
According to data from BTCBaike, the regulatory framework for stablecoins is still under development, and policy changes may affect the scope of pilot programs or asset eligibility. This pilot program marks a significant step forward for crypto assets in regulated financial markets and could potentially be expanded to more types of digital assets or derivatives in the future.
Facing the dynamic evolution of regulations, XBIT Wallet DEX’s “compliance adaptability” advantage provides users with reassurance: the team has a dedicated regulatory research group that tracks policy developments such as the CFTC and the GENIUS Act in real time, allowing for rapid iteration of wallet functions as needed—for example, if the pilot program expands to “US Treasury tokenized collateral,” the wallet will immediately integrate compliant US Treasury token protocols, supporting users to directly use them as collateral; simultaneously, the wallet strictly adheres to the principle of “technology neutrality,” not binding to a single blockchain or asset, ensuring that regardless of regulatory changes, users can access compliant digital assets through the wallet and continuously participate in regulated financial markets, truly achieving “regulation changes, tools remain the same, opportunities are always there.”
From the CFTC breaking down barriers to crypto asset collateral to USDC leading the rise of compliant stablecoins, this transformation is not only a game for institutions, but also requires tools like XBIT Wallet DEX that combine efficiency, security, compliance, and flexibility, allowing ordinary users to also board the fast train of “on-chain-off-chain” integration. As pilot programs progress, the boundaries between digital assets and traditional finance will become increasingly blurred, and wallets with multiple advantages may become a key bridge connecting individuals with a trillion-dollar market.
