CME Group is launching crypto benchmarks for XRP to provide transparent pricing information for the seventh-biggest crypto.
On Thursday, the world’s leading derivatives marketplace in the US disclosed supporting XRP pricing information via its official X handle and website. The announcement revealed that from July 29, CME Group will incorporate USD reference rates and real-time indices for XRP and Internet Computer (ICP).
Essentially, the derivatives marketplace will now provide transparent and standardized pricing information for XRP and ICP, joining their existing suite of cryptocurrency benchmarks.
Starting July 29, benefit from transparent pricing on two new cryptocurrencies as CME CF Internet Computer-Dollar and XRP-Dollar Reference Rates and Real-Time Indices are added to our expanding suite of benchmarks. https://t.co/1kn5BPZi4C pic.twitter.com/jqcJPInSt9
— CME Group (@CMEGroup) July 11, 2024
How CME Group Pricing Info Works
Notably, CME CF Reference Rates compile and aggregate trade data from leading crypto spot exchanges to produce a daily reference rate for the USD value of supported crypto. The calculation methodology prioritizes transparency and real-time accuracy to ensure the reference rate reflects the underlying spot market conditions.
The reference rates will be published once daily, specifically from 3:00 PM to 4:00 PM London time. Conversely, the real-time indices will be updated continuously throughout the day, including weekends.
Emphatically, CME Group is now promoting accurate XRP pricing data to facilitate better price discovery, risk management, and the creation of financial products based on these cryptocurrencies.
By introducing these reference rates, the leading American derivatives market player aims to provide crypto traders, companies, and other stakeholders with a trusted and reliable price reference source.
XRP Army Reacts
XRP’s addition to CME benchmarks has elicited various reactions from passionate community members. Some believe it is a preparatory step to something much more significant for XRP, including an ETF.
Significantly, XRP joins CME Group’s benchmarks, following in the footsteps of Bitcoin, which has been tracked for eight years, and Ethereum, which has been monitored for six years. Notably, the reference rates for Bitcoin and Ethereum serve as the settlement price for CME’s cryptocurrency futures.
Other digital assets that preceded XRP in CME benchmarks included Stellar (XLM), Solana, Polygon, Chainlink, and Litecoin.