KEY INSIGHTS
- Derive US expansion would fund legal and technical work to pursue a regulated derivatives business in America.
- The Foundation can use limited treasury funds for compliance and regulatory work but no spending cap has been disclosed.
- Derive has not confirmed a US launch and will assess regulatory requirements before making further commitments to the plan.
The decentralized derivatives trading platform Derive is looking for ways to penetrate the US market after evaluating possibilities of bringing their on-chain derivatives trading infrastructure under regulation. The Derive Foundation has come forward with the idea of using existing treasury funds for assessing the regulatory needs and building the necessary system for US-based derivatives business.
While this proposal is intended to cover expenses such as legal consultation and other compliance requirements, it does not provide any assurance that Derive has been able to secure regulatory clearance to launch its trading platform in the US.
The Foundation said it has started discussions with US regulators and advisers about bringing its derivatives technology into regulated markets. The proposal describes the initial engagement as constructive but does not identify the authorities involved or disclose any approvals received.
The initiative would allow Derive to assess a US business while its international platform continues developing as a decentralized finance-focused venue for eligible non-US participants.
Derive US Expansion Targets a Large Derivatives Market
Derive’s trading ecosystem is seen by the foundation as being one of the opportunities in the US market. The trading ecosystem includes highly performant trading together with on-chain margin, clearing, settlements, and risk management.
Source: Derive
The Foundation seeks to establish whether such an ecosystem can facilitate the trading of regulated derivatives in the US and other markets.
The proposal identifies V3 as the next stage in Derive’s infrastructure development. However, it does not specify which products a future US business would offer or explain how its trading operations would differ from those of the existing platform.
The size of the worldwide derivatives market helps in understanding the proposed legislation. The Bank for International Settlements (BIS) reported that the notional value of existing over-the-counter derivatives amounted to $846 trillion by June 2025. The gross market value of the derivatives was $21.8 trillion.
The Bank for International Settlements (BIS) estimated that in April 2025, the average daily turnover in OTC interest rate derivatives stood at $7.9 trillion. The turnover in transactions made by U.S. trading desks was approximately $2 trillion, accounting for 24 percent of the total daily turnover.
Authorization of the Treasury for Regulation and Technical Assistance
Under the suggested mandate, the Foundation may use legal representation, regulators, auditors, accountants, compliance professionals, security firms, and risk modeling validation experts.
Moreover, it will be able to set up, acquire, structure, and finance any entity that is needed under the chosen regulatory regime.
The licensed activities will be the creation of systems that ensure compliance, market surveillance, clearing, custody, settlement, and risk management. Derive can also bring in banks, payment services, custodians, clearinghouses, intermediaries, and other infrastructure players to assess the requirements of a regulated market.
In this framework, the Foundation is provided with the flexibility to address the regular costs of legal and regulatory implementation without the need to propose a governance structure for each cost.
However, the authorization would cover limited existing treasury resources. The document does not specify a dollar amount or percentage of treasury assets that could be allocated to the initiative.
Any material capital commitment beyond the exploratory and implementation phase would be considered separately after the regulatory pathway and its requirements become clearer.
Derive Seeks to Preserve Ecosystem Alignment
The proposal also addresses how a future US-regulated business would use Derive’s underlying technology.
The Foundation intends to retain ownership and stewardship of the core technology and intellectual property. It would seek to establish commercial arrangements governing how any US entity uses those assets.
Potential agreements could cover intellectual property, technology services, cost allocation and other relationships between Derive entities. The proposed approach is intended to maintain commercial alignment with the broader Derive ecosystem while leaving the final legal and ownership structure open.
The proposal does not establish whether the Foundation would own a future US operating company directly or through a subsidiary. It also does not determine how revenue, costs or other commercial benefits would be distributed.
These arrangements would be developed as the Foundation evaluates the available legal and regulatory options.
US Launch Depends on Future Decisions
The proposed expansion of Derive US does not oblige the Foundation to any particular registration, regulation, products or timing.
Rather, it permits ongoing dialogue with regulators, consultants and market players while the Foundation considers whether it is feasible for the venture to continue under acceptable terms.
The final corporate structure and implementation arrangements also remain undecided. The Foundation has reserved the ability to reconsider the initiative if the conditions required for a US launch prove unsatisfactory.
