CME CEO Floats Idea of Proprietary Crypto as Exchange Explores Its Own Token

CME Group CEO Terry Duffy says the exchange is exploring creating its own cryptocurrency, a potential “CME coin” that could run on a decentralised network and be used by other market participants.

Duffy revealed the idea on CME’s latest earnings call, when Morgan Stanley analyst Michael Cyprys asked about tokenised collateral. Duffy said the company is reviewing different forms of margin and stressed that who issues a token matters. 

He said he would be more comfortable accepting a token from a systemically important financial institution than from a third- or fourth-tier bank. 

So if you were to give me a token from a systemically important financial institution, I would probably be more comfortable than maybe a third or fourth-tier bank trying to issue a token for margin. Not only are we looking at tokenized cash, we’re looking at different initiatives with our own coin.

Terry Duffy, CME Group CEO.

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CME Exploring Proprietary Crypto Assets

CME is already working on a tokenised cash product in partnership with Google, scheduled to launch later this year. That system is designed to use a depository bank to facilitate transactions and remains firmly within existing financial infrastructure.

The potential “own coin” mentioned by Duffy would be separate from that effort. He suggested such a token could be used more broadly by industry participants, possibly as a tool for margin or settlement, and could live on a decentralised network rather than a closed system.

If CME moves forward, it would be the first time the exchange has openly discussed issuing its own blockchain-based asset, rather than simply supporting tokenisation in general.

The comments come as CME Group is preparing to launch 24/7 trading for all crypto futures in the second quarter and to list new futures contracts tied to additional blockchain networks.

CME would not be the first large financial institution to issue its own token. JPMorgan has already introduced tokenised deposits through JPM Coin on Coinbase’s Base network. Similarly, the NYSE is now offering tokenised securities trading, running 24/7. 

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