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Collateral

Swiss Bank LUKB to Accept BTC And ETH as Loan Collateral

by admin September 25, 2025

In its recent policy update, Swiss Bank Luzerner Kantonalbank (LUKB) announced that it will allow clients to pledge Bitcoin (BTC) and Ethereum (ETH) as collateral for loans. The bank first added trading and custody services for cryptocurrencies last May.

According to a report by Finews, LUKB is taking the first step toward using cryptocurrencies in the lending business with this move. It will help the company grow and ensure that the whole value chain of digital assets is always integrated.

“We are responding to market developments and client needs,” said Serge Kaulitz, Head of Blockchain & Digital Assets at LUKB. “Cryptocurrencies have become a recognized and highly liquid asset class. Similar to equities or funds, they can serve as collateral for a Lombard loan, since they can be liquidated at any time.”

The digital business will also help in expanding LUKB’s portfolio by giving it more options as interest rates go down. This income stream that doesn’t come from interest is becoming more important. Kaulitz stresses that the digital business is also meant to help the bank improve its digital services across the entire institution.

Moving towards crypto-based banking

Switzerland is becoming a pioneer in digital asset-based banking. Early this year, the state-owned bank, PostFinance, announced that it had included an Ethereum staking option in its banking offerings.

Additionally, last week, Swiss banks made a big move that could change how money moves between banks. In a trial led by the Swiss Bankers Association (SBA), top banks like UBS, PostFinance, and Sygnum Bank completed the first-ever bank payment on a public blockchain with full legal approval.

Also Read: Ethereum Exchange Supply Hits 9-Year Low Amid Institutional Surge

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September 25, 2025 0 comments

Crypto Trends

CFTC To Explore Stablecoins for Derivatives Collateral

by admin September 24, 2025

The US Commodity Futures Trading Commission is looking to allow tokenized assets, including stablecoins, to be used in derivatives markets as collateral in a move supported by crypto executives.

CFTC acting chair Caroline Pham said on Tuesday that her agency will “work closely with stakeholders” on the scheme and is encouraging feedback on using tokenized collateral in derivatives markets until Oct. 20.

“The public has spoken: tokenized markets are here, and they are the future. For years I have said that collateral management is the ‘killer app’ for stablecoins in markets.”

If implemented, stablecoins like USDC (USDC) and Tether (USDT) would be treated similarly to traditional collateral like cash or US Treasurys in regulated derivatives trading. Congress passed laws earlier this year regulating stablecoins, which have seen their adoption grow among financial institutions.

Source: Caroline Pham

Stablecoin, crypto heavyweights back move

Crypto executives from stablecoin issuers Circle Internet Group, Tether, Ripple Labs and crypto exchanges Coinbase and Crypto.com all gave their stamp of approval for the CFTC’s move.

Circle president Heath Tarbert said that the GENIUS Act “creates a world where payment stablecoins issued by licensed American companies can be used as collateral in derivatives and other traditional financial markets.”

“Using trusted stablecoins like USDC as collateral will lower costs, reduce risk, and unlock liquidity across global markets 24/7/365,” Tarbert added.

US President Donald Trump signed the GENIUS Act into law in July. It’s geared toward establishing clear rules for payment stablecoins, but is still awaiting final regulations before implementation.

Coinbase chief legal officer Paul Grewal also backed the move, and said in a X post on Tuesday that “tokenized collateral and stablecoins can unlock US derivatives markets and put us ahead of global competition.”

Source: Paul Grewal

Meanwhile, Jack McDonald, senior vice president of stablecoins at Ripple, said the initiative is a key step toward integrating stablecoins into the “heart of regulated financial markets,” and driving greater efficiency and transparency in derivatives markets.

“Establishing clear rules for valuation, custody, and settlement will give institutions the certainty they need, while guardrails on reserves and governance will build trust and resilience.”

Initiative in the works since early 2025

Pham said the tokenized asset initiative will build on the CFTC’s Crypto CEO Forum and is also part of the previously announced crypto sprint to apply the President’s Working Group on Digital Asset Markets recommendations.

The crypto CEO forum in February called for crypto industry CEOs to provide input on an upcoming digital asset pilot program and discussed the use of tokenized non-cash collateral.

Related: CFTC adds crypto leaders to digital asset group, JPMorgan exec tapped for co-chair

The CFTC’s Global Markets Advisory Committee also released a recommendation last year from its Digital Asset Markets Subcommittee on expanding the use of non-cash collateral through distributed ledger technology.

US crypto regulatory landscape changing

Pham’s announcement comes the same day Securities and Exchange Commission Chair Paul Atkins said his agency is working on an innovation exemption that would act as a regulatory carve-out, giving crypto companies temporary relief from older securities rules while the SEC develops tailored regulations.

He also announced Project Crypto in July, which hopes to modernize the securities rules and regulations around crypto and move America’s financial markets to move onchain.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations — Samson Mow

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September 24, 2025 0 comments

Paul Atkins has been confirmed by the Senate to take over the Securities and Exchange Commission as chairman. (Senate Banking Committee)

NFT Gaming

U.S. CFTC Moves Toward Getting Stablecoins Involved in Tokenized Collateral Push

by admin September 23, 2025

The U.S. Commodity Futures Trading Commission is starting an initiative to allow stablecoins as tokenized collateral to satisfy margin needs in the vast derivatives market, inviting input from the industry on how to bring such a policy online.

In the latest move toward crypto inclusion in the U.S. financial sector, the acting chief of the CFTC, Caroline Pham, continues to advance policy in the absence of President Donald Trump’s current nominee to be the chairman, former Commissioner Brian Quintenz. As the confirmation process for Quintenz remains mired in delays and some open conflict, Pham has been regularly announcing initiatives as part of a “crypto sprint” and working with Securities and Exchange Commission Chairman Paul Atkins.

“For years I have said that collateral management is the ‘killer app’ for stablecoins in markets,” Pham said in a Tuesday statement. “I’m excited to announce the launch of this initiative to work closely with stakeholders to enable the use of tokenized collateral including stablecoins.”

Pham had been pushing since last year for a so-called regulatory sandbox for tokenization, when she served as a commissioner during the previous administration, and when she took over as acting chairman, she announced the pursuit of a pilot program on stablecoin-backed tokenization.

Stablecoins, newly regulated under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act, are the dollar-based tokens that are key to the plumbing of crypto markets and smart-contract-driven digital finance. In an agency press release that also rounded up comments from Circle, Coinbase and Ripple executives, the CFTC said it’ll take written ideas until October 20.

The recent President’s Working Group report on crypto policy called on the CFTC to “provide guidance on the adoption of tokenized non-cash collateral as regulatory margin.”

According to Pham, “these market improvements will unleash U.S. economic growth because market participants can put their dollars to work smarter and go further.”

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September 23, 2025 0 comments