Cboe Digital receives CFTC approval to launch margin futures on Bitcoin and Ether

June 06, 2023 - Cboe Clear Digital announced it has received the necessary approval from the Commodity Futures Trading Commission (CFTC) to expand its product offering to include margined futures contracts. The initial product launch will include physically and financially settled Bitcoin and Ether contracts in the second half of 2023. Cboe Digital is the first U.S. regulated crypto native exchange and clearinghouse combination platform to offer leveraged derivatives products. Cboe Digital's vision to bring trust and transparency to crypto spot and derivatives markets is an intermediary-inclusive model. 

Up to now, Cboe Digital has offered trading and clearing of Bitcoin and Ether futures on a fully collateralised basis, which require customers to outlay the full amount of a futures contract upfront. The new margin model will require only a percentage of the total posted as collateral, enabling customers to trade futures in a less capital-intensive way. Trades will be executed and cleared through an approved set of member Futures Commission Merchants (FCMs) with Cboe Digital's clearinghouse acting as the central counterparty. 

"We are grateful to the CFTC for working with us as we continue to build out our vision for a transparent, U.S. regulated crypto marketplace that welcomes intermediaries," said John Palmer, President of Cboe Digital. "Derivatives are a time-tested and valuable tool that enable investors to gain market exposure and manage their risk."

Cboe Digital has the unique ability to trade spot and margin futures on the same platform, which fills a key gap in the US landscape, and brings greater cost and operational efficiencies to enhance customers' trading experience. In addition to margin futures, Cboe Digital's spot market supports trading in:

• Bitcoin
• Bitcoin Cash
• Ether
• Litecoin
• USDC 

This announcement comes the day after the SEC charges Coinbase for operating as an unregistered securities exchange and two days after the SEC filed 13 charges against Binance. Back in March, the CFTC charged Binance with operating an illegal Digital Asset exchange.