Can crypto trust firms compete with banks in US derivatives settlements?
Summary
The CFTC’s Nov. 5 no-action relief lets derivatives clearinghouses use qualifying trust companies, including crypto custodians, for daily settlements previously limited to banks. The change could open access to large payment flows: CME clearing systems moved an average of $8.7 billion per business day in the first half of 2026. Coinbase Custody Trust was expected to provide settlement services through its partnership with Nodal Clear. Crypto firms are also expanding into institutional finance, while traditional banking groups challenge the regulatory framework. The relief is conditional and revocable, unlike a formal rule change, leaving its durability uncertain amid leadership vacancies at the CFTC and political shifts in Congress.
