CME Group, a prominent global markets company, has unveiled the introduction of reference rates and real-time indices for XRP and ICP. This initiative is part of their strategy to provide credible benchmarks crucial for institutional cryptocurrency products. Brad Garlinghouse, CEO of Ripple, emphasized the importance of establishing trusted benchmark rates as the initial step towards developing these products.
CME Group Rolls Out Transparent Pricing for XRP and Internet Computer
CME Group, a leading entity in global markets, announced on Thursday its plan to launch transparent pricing for two additional cryptocurrencies starting July 29. Known for its diverse range of benchmark products and services across various asset classes such as derivatives, equities, and fixed income, CME Group elaborated:
Joining the esteemed CME CF family of reference rates and real-time indices are Internet Computer (ICP) and XRP.
The pricing for each cryptocurrency is calculated by aggregating trading activity from major spot exchanges of cryptocurrencies using U.S. dollar prices for ICP and XRP. This method ensures that the benchmarks accurately reflect reliable market data. CME clarified that these benchmarks are non-tradable and are exclusively intended as reference points for pricing and valuation purposes.
The CME CF family of reference rates comprises standardized, regulated benchmarks that offer transparent and dependable cryptocurrency pricing. Updated daily, these rates aggregate trade data from major exchanges to establish the fiat price of selected cryptocurrencies. CF Benchmarks, regulated by the UK’s Financial Conduct Authority (FCA), oversees the administration of these indices.
Brad Garlinghouse, CEO of Ripple, voiced his endorsement on the social media platform X, stating:
“The initial step towards institutional crypto products is establishing a trusted benchmark reference rate. It’s encouraging to see CME Group and CF Benchmarks collaborate on this XRP index. The market has clearly shown its support.”
The inclusion of ICP and XRP in CME Group’s offerings represents a significant advancement in cryptocurrency benchmarks. By offering reliable and transparent pricing, these new indices bolster institutional interest in cryptocurrencies, thereby promoting trust and broader adoption within the financial sector. This development underscores CME Group’s dedication to innovation and leadership in the swiftly evolving digital asset landscape.
What are your thoughts on CME Group’s latest benchmarks for ICP and XRP? Share your opinions in the comments section below.
