Cboe Clear Digital has received the necessary approval from the Commodity Futures Trading Commission to expand its product offering to include both physically and financially cleared margined futures contracts for bitcoin and ether.

Cboe Clear Digital has received the necessary approval from the Commodity Futures Trading Commission (CFTC) to expand its product offering to include both physically and financially cleared margined futures contracts for bitcoin and ether. 

The initial product launch will be in the second half of 2023.  

Cboe Digital is the first US regulated crypto native exchange and clearinghouse combination platform to offer leveraged derivatives products. To date the platform 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.