Which assets qualify as derivatives collateral?

TLDR

Today, eligible crypto assets for regulated US derivatives collateral are Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) under the CFTCs pilot program.

1. The CFTC will allow BTC, ETH, and USDC to be posted as margin collateral in its pilot program. See the Bloomberg report.
2. In the initial three months, eligibility is limited to BTC, ETH, and USDC per a policy summary on an exchange notice.
3. Guidance also contemplates tokenized Treasuries and money market funds as collateral when requirements are met, per the same report.

Deep Dive

1. Current Eligible Assets

The CFTCs digital asset pilot permits futures brokers and related venues to accept Bitcoin (BTC), Ether (ETH), and USD Coin (USDC) as derivatives collateral. This is a formal step integrating key crypto assets into the US derivatives collateral stack, with oversight on segregation, reporting, and surveillance in place per the Bloomberg coverage.

2. Initial Phase Limits

For the first three months, the program explicitly limits accepted crypto collateral to BTC, ETH, and USDC, according to an industry summary of the policy timeline on an exchange notice. The pilot includes strict weekly reporting to the regulator on amounts held by asset type and account category (as described in the notice above).

3. Tokenized TradFi Collateral

Beyond native crypto, the guidance references tokenized versions of traditional assets. The policy package includes tokenized US Treasuries and money market funds within scope, subject to requirements for segregation, reporting, and surveillance, per the Bloomberg report.

Conclusion

In the pilots opening phase, the practical answer is BTC, ETH, and USDC, with regulated reporting and safeguards. The framework also paves the way for tokenized Treasuries and money market funds, signaling a gradual expansion of acceptable collateral as controls prove out.