CFTC Approves Tokenized Assets, Including BlackRock's BUIDL, as Collateral

Nov 22, 2024, 12:10 AM

The U.S. Commodity Futures Trading Commission (CFTC) has advanced a recommendation to use tokenized assets as collateral in derivatives trading, including tokenized US Treasuries which offer instant redemption and settlement. This development, approved by the CFTC's Global Markets Advisory Committee (GMAC), includes the use of tokenized non-cash collateral like BlackRock's BUIDL token. The move is seen as a significant step towards integrating digital assets into traditional financial markets, potentially unlocking new liquidity avenues. CFTC Commissioner Pham highlighted the progress on regulatory clarity for digital assets with this recommendation.