US CFTC Announces Tokenized Collateral Pilot for Stablecoins

The CFTC announced a "Tokenized Collateral Program" for regulated derivatives traders to test stablecoins as collateral.
This pilot program will involve clearinghouses and futures commission merchants under CFTC oversight.
The initiative aims to examine the operational, legal, and risk factors of using tokenized collateral in derivatives markets over three years.
Participants must adhere to strict risk management and compliance standards.
Stablecoins are being considered due to their importance in digital asset markets, but no specific stablecoin or issuer will be endorsed.
The CFTC will review the pilot's outcomes before contemplating changes to collateral rules.
Chairman Rostin Behnam mentioned the pilot's goal is to modernize collateral management while ensuring financial stability and customer protection.
This would be the first formal CFTC initiative to explore stablecoins as collateral in US derivatives markets.