CME Group Bets on XRP, Set to Unveil Futures Contracts This May
The booming world of cryptocurrency derivatives is about to welcome a new player, as CME Group, a heavyweight in global derivatives marketplaces, officially targets May 19 for the debut of futures contracts tied to XRP.
The launch, unveiled in a Thursday announcement, remains contingent on the green light from regulators.
Contract Specs: Micro, Standard, and Cash-Settled
Seeking to cater to a broad spectrum of traders, CME plans to offer flexibility with both a micro contract (2,500 XRP) and a standard, larger contract (50,000 XRP).
Trading won’t involve physical XRP; instead, these contracts will be settled in cash, pegged to the daily CME CF XRP-Dollar Reference Rate, determined each afternoon London time.
Addressing Market Demand and Confirming Plans
This confirmation follows and partially validates earlier speculation sparked by a premature leak on a test website, which had also mentioned Solana futures—details CME quickly retracted at the time.
Driving the decision, according to CME’s crypto product head Giovanni Vicioso, is the undeniable groundswell of interest surrounding XRP and its underlying XRP Ledger (XRPL) technology.
As institutional and retail embrace of the network climbs, CME aims to furnish the market with a more efficient, capital-savvy tool for gaining exposure to XRP, which currently stands as the fourth-largest digital asset by market capitalization.
Vicioso emphasized the contracts’ role in supporting both investment and hedging needs for clients navigating this expanding ecosystem.
Broadening Crypto Offerings Amidst Surging Volume
This move slots XRP alongside Bitcoin, Ether, and the recently added Solana (SOL) within CME’s growing portfolio of cryptocurrency derivative products.
It underscores the exchange’s commitment to this burgeoning asset class, further evidenced by explosive growth metrics.
In the first quarter alone, CME’s crypto derivatives saw average daily volumes leap to 198,000 contracts (a notional value of $11.3 billion), marking a staggering 141% year-over-year increase.
Open interest also climbed significantly, averaging 251,000 contracts, up 83% from Q1 of the previous year.
Positive Reception from Industry Partners
The news resonated positively within the financial sphere.
Robinhood’s JB Mackenzie hailed it as a “natural next step” in broadening retail access to futures.
Teucrium CEO Sal Gilbertie underscored XRP’s foundational design for real-world financial applications, highlighting its function in streamlining global payments via the XRP Ledger and pointing to the strong initial uptake ($35 million AUM in 10 days) of his firm’s own leveraged XRP exchange-traded fund.
Also Read: Futures Exchange Giant CME Plans To Kick Off Bitcoin Spot Trading
