TechFlow News —
Cboe Digital, the digital asset exchange owned by Cboe, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) to offer physically and cash-settled margin futures contracts starting in the second half of this year. The exchange currently only offers fully collateralized cryptocurrency futures, requiring clients to pay the full amount before trading. Margin trading, however, allows traders to open positions with less capital upfront. John Palmer, President of Cboe Digital, said physical settlement of digital assets will enable traditional financial firms to gain exposure to bitcoin or ether futures without relying on intermediaries.
Currently, Cboe Digital offers spot and derivatives trading in digital assets including bitcoin, bitcoin cash, ether, litecoin, and USDC, and operates a clearing house. The exchange intends to expand the range of tokens available for trading on its platform and will require the use of independent futures commission merchants (FCMs) as intermediaries for margin contracts.
Cboe Digital primarily serves professional and institutional investors. Last year, companies including DRW, Galaxy Digital, Interactive Brokers, and Robinhood Markets Inc. became minority investors in the crypto platform.
