CME Group, a top global financial markets firm, has unveiled the introduction of reference rates and real-time indices for XRP and ICP. Ripple CEO Brad Garlinghouse emphasized the importance of establishing a trusted benchmark reference rate as the initial step towards developing institutional crypto products.
CME Group Unveils Clear Pricing for Internet Computer and XRP
CME Group, a prominent player in global markets, disclosed its plans on Thursday to provide transparent pricing for two additional cryptocurrencies starting July 29. With a reputation for offering a wide array of benchmark products and services across different asset classes such as derivatives, equities, and fixed income, the company stated:
Adding to the CME CF family of reference rates and real-time indices are internet computer (ICP) and XRP.
The pricing for each cryptocurrency is determined by aggregating trade data from major spot exchanges using U.S. dollar prices for ICP and XRP. This methodology ensures that the benchmarks accurately reflect market data that is both reliable and precise. It is important to note that these benchmarks are not tradable and are solely utilized as reference points for pricing and valuation purposes, as explained by CME.
The CME CF family of reference rates comprises standardized, regulated benchmarks that offer transparent and reliable cryptocurrency pricing. These rates are published daily, consolidating trade information from major exchanges to ascertain the fiat price of selected cryptocurrencies. CF Benchmarks, a UK FCA-regulated entity, oversees the administration of these indices.
Expressing his approval on the social media platform X, Ripple CEO Brad Garlinghouse stated:
The initial step towards institutional crypto products is to establish a trusted benchmark reference rate. It is encouraging to witness CME Group and CF Benchmarks collaborating on an XRP index. The market has spoken.
The inclusion of ICP and XRP in CME Group's lineup represents a significant advancement in cryptocurrency benchmarks. By offering dependable and transparent pricing, these new indices cater to the growing institutional interest in cryptocurrencies, thereby fostering trust and wider adoption within the financial sector. This move underscores CME Group's dedication to innovation and leadership in the ever-evolving digital asset landscape.
What are your thoughts on CME Group's new benchmarks for ICP and XRP? Share your opinions in the comments section below.