Can Cryptocurrencies Other than the Base Asset Be Used as Collateral for Derivatives Trading?

Yes, many crypto derivatives exchanges allow traders to use various cryptocurrencies, such as major altcoins or stablecoins, as collateral (margin) for trading. This is often done through a multi-asset collateral system.

However, the exchange may apply a 'haircut' to the value of the non-base asset collateral to account for its price volatility.