CME Group CEO: "Reviewing issuance of an in-house CME coin"

JH Kim

Summary

CME Group, the operator of the Chicago Mercantile Exchange in the US, said it is reviewing the issuance of its own token, the “CME coin.”
CME Group’s CEO said a token issued by a financial institution could be viewed as more trusted than a token issued by a Tier 3–4 bank for margin trading.
CME Group is working with Google to develop a “tokenized cash” solution, which is expected to be used as infrastructure to improve trading margin and clearing efficiency.

CME Group, the operator of the Chicago Mercantile Exchange in the US, is reportedly considering issuing its own token, dubbed the “CME coin.”

According to CoinDesk, a digital-asset (cryptocurrency) news outlet, on the 4th (local time), CME Group Chief Executive Officer (CEO) Terry Duffy said, “We are reviewing the launch of our own token that operates on a decentralized network,” adding that “a token issued by a financial institution could command greater trust than a token issued by a Tier 3–4 bank for margin trading.”

He explained, “We are reviewing various options, including tokenized cash as well as approaches that use our own coin.” He did not, however, specify whether the token would be a stablecoin, a payment token, or another type of asset.

CME Group is currently working with Google to develop a “tokenized cash” solution, which is said to be targeting a launch by the end of this year. The solution is expected to be used as infrastructure to improve trading margin and clearing efficiency.

The market is interpreting this as a move by CME Group to expand its business scope into tokenization and digital assets, leveraging the infrastructure and credibility it has built as a derivatives exchange.