CFTC Expands Stablecoin Collateral List as National Trust Banks Win Approval
The Commodity Futures Trading Commission on Feb. 7 moved to expand which stablecoins can be used as regulated collateral, while federal approvals have increasingly favored nationally chartered trust banks as custodians and settlement partners. Regulators framed the action as a step toward integrating payment tokens with traditional financial rails, giving market participants clearer guardrails for using stablecoins in cleared markets.
Why this matters: the shift reduces operational friction for institutional users, could increase liquidity and settlement efficiency, and paves the way for broader commercial use of tokenized cash equivalents. Market watchers say the move raises confidence among banks and fintechs but also puts a spotlight on supervision and consumer protections as stablecoins scale. Expect follow-up guidance and coordination among federal agencies as participants adapt to the new framework.