Can Crypto Assets Be Used as Margin Collateral?

Yes, many crypto derivatives exchanges allow traders to use various cryptocurrencies, such as Bitcoin (BTC) or stablecoins (USDC, USDT), as collateral to meet margin requirements. The collateral is typically held in a segregated account.

Non-stablecoin crypto collateral may be subject to "haircuts" or valuation adjustments due to their price volatility, which affects the effective margin value.