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The Commodity Futures Trading Commission (CFTC) has sanctioned the implementation of tokenization for managing trade collateral within the U.S. derivatives markets.
The CFTC’s Global Markets Advisory Committee has put forth a recommendation to broaden the application of distributed ledger technology (DLT) for the tokenization of non-cash collateral. Specifically, it suggests utilizing tokenization for the management of trading collateral in the U.S. derivatives markets.
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Tokenization is anticipated to enhance the variety of assets that can be utilized for collateral trading on conventional derivatives exchanges. Notably, tokenized non-cash assets may serve as regulatory margin for both cleared and non-cleared derivatives. Furthermore, the regulator outlined specific conditions and restrictions on the use of tokenized assets to address credit, market, and liquidity risks.
The commissioners unanimously endorsed the recommendation. The report highlights that the adoption of distributed ledger technology and tokenization will assist in resolving several systemic issues within the U.S. financial markets and bolster their competitiveness.
Recently, tokenization has seen increased application across various sectors. For instance, one of the largest banks in South Korea initiated a tokenization pilot project in early November 2024, aimed at enhancing the process of refunding the Goods and Services Tax (GST) on retail purchases.
Сообщение Use of Tokenized Assets for Trade Collateral Approved in U.S. появились сначала на CoinsPaid Media.
