The Clearing Company announced that it has filed its application with the U.S. Commodity Futures Trading Commission (CFTC) to become a Derivatives Clearing Organization (DCO).

The move marks an important next step for the company, which recently announced a $15M seed round led by USV, with participation from Haun Ventures, Variant, Coinbase Ventures, Compound, Rubik, Earl Grey, Cursor Capital, Asylum, Terrance Rohan, Soleio, Furqan Rydhan, Bill Lee, Henri Stern, Elena Nadolinski, Jonah Van Bourg, Ben Levy, and other prominent angel investors.

If approved, The Clearing Company would operate the first stablecoin-native clearinghouse purpose-built for prediction markets, designed to bring this emerging market category fully onchain and under a regulated framework.

Leading the company’s regulatory and compliance strategy is Sam Schwartz, who brings extensive experience with CFTC-regulated markets and clearinghouses, having previously led Kalshi’s DCO through its application, approval, and first plus year of operation as part of his former role as Kalshi’s Chief Compliance Officer.

“A stablecoin-native clearing model allows derivatives markets to operate transparently and efficiently onchain, while meeting the same regulatory standards as traditional registrants,” said Schwartz. “This filing represents a meaningful step forward for the industry and we look forward to working with the CFTC and its excellent staff throughout this process.”

The DCO application is currently under review by the CFTC.

Source: The Clearing Company