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Can Cryptocurrencies Be Used as Collateral for Margin in Traditional Futures Markets?

Generally, traditional, regulated futures exchanges like the CME do not accept cryptocurrencies directly as collateral for margin. They require highly liquid, low-risk assets like cash or US Treasury securities.

However, some native crypto derivatives exchanges do accept various cryptocurrencies as collateral, often with a haircut applied to account for their high volatility.

How Does the Exchange’s “Haircut” Policy Mitigate the Risk of Volatile Collateral?
How Does the Choice of Gas Fee Token (Native Vs. Stablecoin) Influence the Native Token’s PQ?
What Is the Concept of ‘Haircut’ When Using Non-Cash Assets as Collateral?
Why Is Variation Margin Typically Settled in Cash, While Initial Margin Can Be Non-Cash Assets?