Today in crypto: BlackRock has filed for regulatory approval to launch a staked Ether exchange-traded fund in the United States. Coinbase has reopened app registrations in India after a rocky exit more than two years ago, and ZKsync Lite is set to sunset in 2026.
CFTC pilot opens path for crypto as collateral in derivative markets
The US Commodity Futures Trading Commission has issued updated guidance for tokenized collateral in derivatives markets, paving the way for a pilot program to test how cryptocurrencies can be used as collateral in derivatives markets.
Collateral in derivatives markets serves as a security deposit, acting as a guarantee to ensure that a trader can cover any potential losses.
The digital asset pilot, announced by CFTC acting chairman Caroline Pham on Monday, will allow futures commission merchants (FCM) — a company that facilitates futures trades for clients — to accept Bitcoin (BTC), Ether (ETH) and Circle’s stablecoin USDC (USDC) for margin collateral.
The CFTC pilot is another step toward integrating crypto into regulated markets, and Circle CEO Heath Tarbert said it will also protect customers, reduce settlement frictions and assist with risk reduction.
Pham said that the pilot program “establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
As part of the pilot, participating FCMs will be subject to strict reporting criteria, which require weekly reports on total customer holdings and any significant issues that may affect the use of crypto as collateral.
BlackRock files for listing staked Ether ETF
US-based asset management company BlackRock has applied to list and trade shares of an investment vehicle tied to staked Ether, following its offering of other cryptocurrency products.
In a Friday filing with the US Securities and Exchange Commission, BlackRock filed a Form S-1 registration statement for its iShares Staked Ethereum Trust exchange-traded fund. The filing is part of the SEC’s process for companies to list investment vehicles such as ETFs, but does not guarantee approval.
Shares of the staked Ether (ETH) fund, which BlackRock intends to list and trade on the Nasdaq exchange under the ticker ETHB, could be one of the first offerings tied to staked cryptocurrencies. Grayscale Investments added staking functionality to its previously approved spot ETH and mini ETH trusts in October.
The regulator has not greenlighted many crypto staking funds since initially approving spot Ether ETFs in May 2024. However, Canary Capital made a similar SEC filing for a staked Injective (INJ) product in July, and Grayscale and Bitwise launched separate staking products tied to Solana (SOL) in October.
BlackRock manages the largest spot Bitcoin (BTC) exchange-traded fund, the iShares Bitcoin Trust ETF, which is listed under the ticker symbol IBIT.
Coinbase mounts a cautious comeback in India, two years after exit
Major US cryptocurrency exchange Coinbase is returning to India after a two-year absence from the market.
Coinbase has resumed app registrations in India as it prepares to roll out local fiat on-ramps in 2026, Coinbase APAC director John O’Loghlen announced at India Blockchain Week (IBW), according to a Sunday report by TechCrunch.
Coinbase’s return to India comes more than two years after it ceased local services in September 2023, following a troubled debut of its local exchange launched in 2022.
“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated. Because we wanted to kind of burn the boats, have a clean slate here,” O’Loghlen said.
As Coinbase resumes customer onboarding in India, users can immediately execute crypto-to-crypto trades, according to the report by TechCrunch.
The exchange initially began onboarding users through an early-access program in October, around the time it hired Karan Malik as its India marketing lead.
Malik had previously overseen marketing for last year’s IBW event, where Coinbase served as a platinum sponsor this year.
“Last year, I was leading the charge and building the marketing and brand playbook for IBW. This year, I’m bringing Coinbase to the party,” the exec said.
When approached by Cointelegraph about its relaunch in India, a Coinbase spokesperson said the exchange’s FIU registration in March allows it to offer crypto trading services in the country. The representative declined to provide further details at this time.