In a move signaling growing mainstream acceptance, XRP, the native token of the Ripple network, is set to be included in the cryptocurrency benchmarking suite offered by CME Group, the world’s leading derivatives marketplace.
CME Group announced the addition of XRP and Internet Computer (ICP) on its official channels, highlighting their commitment to providing transparent pricing information for these prominent digital assets. Starting July 29th, CME CF Reference Rates and Real-Time Indices will be available for both XRP and ICP, joining a growing list of cryptocurrencies already tracked by the derivatives giant.
Enhanced Transparency and Price Discovery
CME CF Reference Rates are calculated by aggregating trade data from leading cryptocurrency spot exchanges, resulting in a daily benchmark reflecting the USD value of the underlying asset. This methodology prioritizes transparency and real-time accuracy, ensuring the reference rate accurately reflects market conditions. The reference rates will be published daily between 3:00 PM and 4:00 PM London time, while real-time indices will provide continuous updates throughout the day, including weekends.
Benefits for Crypto Market Participants
By incorporating XRP into its benchmarking suite, CME Group aims to empower market participants with a trusted and reliable price source. This will facilitate better price discovery for XRP, improve risk management strategies, and potentially pave the way for the development of new financial products based on the cryptocurrency.
Also Read: XRP Price Index Launched By CME: Bullish Sign For Institutional Adoption?
The XRP Community Reacts
The XRP community has responded positively to the news, with some speculating that this could be a precursor to even greater developments for XRP, such as the launch of an exchange-traded fund (ETF). Notably, XRP’s inclusion follows a similar path taken by Bitcoin and Ethereum, whose prices have been tracked by CME Group for eight and six years, respectively. The reference rates for these established cryptocurrencies play a crucial role in determining the settlement price for CME’s cryptocurrency futures contracts.
XRP’s inclusion alongside other prominent digital assets like Stellar (XLM), Solana, Polygon, Chainlink, and Litecoin within CME Group’s benchmarks signifies a significant step towards mainstream recognition for the cryptocurrency and the Ripple network.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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