Coinbase Secures CFTC Approval to Clear Fully Funded Derivatives Directly

Summary

• Coinbase gained CFTC approval to clear fully collateralized derivatives through its own clearinghouse, with USDC collateral and around-the-clock settlement planned.
• Leveraged derivatives and planned single stock perpetuals will still use outside clearing partners because Coinbase Clearing lacks authorization for them.
• Coinbase expanded its Citi stablecoin payments partnership while announcing no plans to operate a derivatives market on Hyperliquid for clients.

Coinbase has secured CFTC approval to clear fully collateralized derivatives through Coinbase Clearing LLC, completing its regulated U.S. derivatives infrastructure. According to the announcement, the Commodity Futures Trading Commission registered Coinbase Clearing on September 28 to clear fully collateralized futures, options on futures, and swaps.

Clearing manages the obligations between buyers and sellers once they trade, ensuring each side can complete the contract. With its own clearinghouse, Coinbase can perform that function directly for products covered by the new registration.

According to Coinbase, its existing derivatives exchange lists contracts, while its futures commission merchant handles brokerage services. The clearinghouse adds the third regulated function, giving Coinbase direct control over those stages for eligible products.

Coinbase expects direct clearing to simplify operations and give it greater flexibility when developing additional regulated contracts. However, the approval sets a clear boundary around the products Coinbase Clearing may handle without outside partners.

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Leveraged Derivatives Will Still Rely on Clearing Partners

Fully collateralized contracts require participants to provide enough funds to cover their obligations when entering a position. Margined derivatives work differently because traders can open larger positions while providing only part of the required collateral.

Consequently, Coinbase cannot use its newly registered clearinghouse for the margined derivatives business it already operates. The company plans to keep using existing clearing partners for those contracts and its proposed single stock perpetual products.

That division matters because an exchange, broker, and clearinghouse do not automatically form one route for every contract. Coinbase must match each product with a clearing arrangement that fits the CFTC’s authorization and applicable requirements.

Moreover, Coinbase describes its clearinghouse as native to USDC and plans to support settlement around the clock. It intends to use USDC as collateral, although those operational features do not expand its authority to leveraged products.

Citi Partnership Expands Coinbase’s Stablecoin Payment Role

Coinbase is also expanding its separate partnership with Citigroup, enabling Citi’s institutional clients to accept stablecoin payments through Spring by Citi. The arrangement brings Coinbase’s payment infrastructure into Citi’s merchant service while keeping bank settlement within Citi’s existing business.

Under the planned payment flow, Coinbase will handle the stablecoin transaction and convert the funds into conventional currency. Citi will then settle the merchant’s payment, allowing businesses to offer stablecoin acceptance through an established banking relationship.

The companies announced their collaboration in October 2025, initially targeting transfers between conventional currency and digital assets. They also explored stablecoin payout methods, while the expanded service brings their work into merchant checkout.

The Citi arrangement concerns payment acceptance and remains separate from the CFTC registration for Coinbase’s derivatives clearinghouse. Both developments expand Coinbase’s infrastructure role, but they serve different clients, transactions, and regulatory purposes.

Coinbase Has Not Announced a Hyperliquid Clearing Plan

Coinbase has not identified a specific new contract that will use Coinbase Clearing or announced a Hyperliquid market. A structure using Hyperliquid’s order book would require a separate proposal and any approvals relevant to that arrangement.

Coinbase can directly clear eligible fully funded contracts while relying on partners for products beyond its authorization. The approval gives Coinbase greater control over derivatives settlement, with the CFTC’s restrictions defining where that control applies.

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