CFTC committee endorses tokenized assets as collateral for derivatives trading

The Global Markets Advisory Committee of the Commodity Futures Trading Commission (CFTC) has taken a significant step towards integrating tokenized assets into traditional finance.

The committee voted to approve the use of tokenized non-cash collateral, specifically endorsing money-market fund tokens from major firms for use in derivatives trading.

This recommendation aims to enhance liquidity and efficiency in the derivatives market.

The proposal will now be forwarded to the full CFTC for further consideration, potentially paving the way for broader acceptance of tokenized assets in conventional trading practices.

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