What Types of Assets Are Typically Accepted as Collateral in Institutional Derivatives Trading?

Highly liquid, low-risk assets are preferred, such as cash in major currencies, sovereign debt like US Treasuries, and highly-rated corporate bonds. In the crypto space, highly liquid digital assets like Bitcoin and Ethereum are often accepted, but with a significant haircut applied to account for their volatility.

Illiquid or highly volatile assets are generally excluded from collateral schedules.