CME Group, a leading global markets company, has announced the launch of XRP and ICP reference rates and real-time indices. Ripple CEO Brad Garlinghouse explained that the first step towards institutional crypto products is having a trusted benchmark reference rate.
CME Group Introduces Transparent Pricing for Internet Computer and XRP
CME Group, a leading global markets company, announced on Thursday that it will offer transparent pricing for two additional cryptocurrencies starting July 29. CME Group is renowned for its wide range of benchmark products and services across various asset classes, including derivatives, equities, and fixed income. The company explained:
Joining the CME CF family of reference rates and real-time indices are internet computer (ICP) and XRP.
The prices for each are calculated by aggregating trade flow from major cryptocurrency spot exchanges using U.S. dollar prices for ICP and XRP. This methodology ensures that the benchmarks reflect accurate and reliable market data. Importantly, these benchmarks are non-tradable and serve solely as reference points for pricing and valuation purposes, CME explained.
The CME CF family of reference rates consists of standardized, regulated benchmarks providing transparent and reliable cryptocurrency pricing. Published daily, these rates aggregate trade data from major exchanges to determine the fiat price of select cryptocurrencies. CF Benchmarks, a UK FCA-regulated entity administers the indices.
Ripple CEO Brad Garlinghouse expressed his support on social media platform X, stating:
First step towards institutional crypto products is to have a trusted benchmark reference rate. Nice to see CME Group and CF Benchmarks collaborate on this for an XRP index. The market has spoken.
The addition of ICP and XRP to CME Group’s offerings marks a significant step in the evolution of cryptocurrency benchmarks. By providing reliable and transparent pricing, these new indices support the growing institutional interest in cryptocurrencies, fostering trust and wider adoption in the financial industry. This move underscores CME Group’s commitment to innovation and leadership in the rapidly evolving digital asset landscape.
Source:- Bitcoin.comNews