The Commodity Futures Trading Commission (CFTC) has launched a formal initiative to allow tokenised collateral, including stablecoins, into U.S. derivatives markets. [RELEASE]

Why it matters: This is the strongest signal yet that U.S. regulators will allow tokenised Money Market Funds (MMFs) and stablecoins as eligible collateral in the $600T global derivatives market (notional value). Collateral = the foundation of derivatives. Shifting from cash and Treasuries to tokenised instruments unlocks 24/7 liquidity, faster settlement, and lower capital costs.

Let’s dig in.

What’s happening

CFTC’s Caroline Pham just called collateral management the “killer app” for stablecoins and she’s moving to make it law. Public comments are open until October 20.

The plan: let traders use tokenised assets like stablecoins and money market funds (MMFs) as margin in derivatives markets.

Go deeper: The current collateral system is slow, manual, and limited to banking hours, forcing firms to hold excess buffers and choking capital efficiency. Settlement relies on outdated rails like ACH and wires, creating costly delays and clawback risks. Both crypto firms and Wall Street giants like JPMorgan are building tokenized networks to fix this. The CFTC’s initiative aims to tackle these deep settlement frictions head-on, not just modernise, but fundamentally rewire market infrastructure.

And it’s not just crypto firms (Circle, Ripple, Tether, Coinbase) pushing for it — Wall Street players like JPMorgan and Franklin Templeton are in too.

Be smart: Tokenised collateral creates a second liquidity rail alongside Treasuries and repo, enabling 24/7, final settlement without clawback risk. It frees up trapped capital by allowing assets to earn yield until the moment they’re pledged, boosting efficiency and reducing buffers. Smart contracts automate margin calls and settlements, cutting manual friction. With firms like Circle and Canton already building this infrastructure, the CFTC’s move brings clarity and scale.

What changes: Last year, the CFTC’s Global Markets Advisory Committee only recommended tokenised MMFs as collateral.

Now: The Acting Chair herself has elevated it into an official regulatory initiative.
Next: Expect draft rules, industry comment, and eventual adoption into the U.S. market infrastructure.

Punchline: The U.S. CFTC’s tokenised collateral initiative sits within a global regulatory chessboard. Compared with the EU’s MiCA framework, which offers harmonised, ex-ante legal certainty across 27 member states but imposes slower, more rigid compliance, the U.S. model emphasizes speed, modular rulemaking, and first-mover advantage. Meanwhile, Asian markets are rapidly advancing tokenised collateral and MMF infrastructure. Hong Kong’s multi-currency tokenised funds and Singapore’s multi-party JPMorgan pilot programs illustrate both regulatory flexibility and innovation, pressuring Western markets to accelerate adoption. T

Strategic implications

Treasury desks will rethink liquidity. Tokenised funds and stablecoins create a new layer of capital efficiency.
Every asset manager needs a tokenised MMF strategy. Once eligible for margin, these products shift from “experimental” to mandatory infrastructure.

Our take

The CFTC’s move isn’t just about faster plumbing, it’s about rewriting the hierarchy of collateral. For decades, Treasuries have been the undisputed “risk-free asset” in derivatives markets. Tokenised MMFs and stablecoins don’t replace that status, but they create a parallel collateral rail that operates 24/7, yields until pledged, and settles final without clawback risk.

Market Signals of Today

Strive acquires Smeler Scientific. Link
Anthony Scaramucci backs AVAX treasury aiming to raise $550 million. Link
Morgan Stanley nears launch of crypto trading via E-Trade. Link
Swarm to offer nine tokenised stocks on the Plasma blockchain mainnet. Link

That’s all for today’s CEO Briefing.

Best,

Marc & Team

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