CME Group is introducing crypto benchmarks for XRP to give clear pricing data for the seventh-largest cryptocurrency.
Through its official X account and website, the top US derivatives marketplace revealed XRP pricing information on Thursday. According to the release, starting July 29, the CME Group will include real-time indices for XRP and the Internet Computer (ICP), as well as USD reference rates.
In essence, the derivatives marketplace will now provide transparent and consistent pricing information for XRP and ICP, adding to their existing array of cryptocurrency benchmarks.
How does CME Group pricing information work?
Remarkably, CME CF Reference Rates creates daily reference rates for the USD value of supported cryptocurrencies by collecting and combining trade data from top cryptocurrency spot exchanges. To ensure that the reference rate accurately represents underlying spot market conditions, the calculation technique places a high priority on transparency and real-time accuracy.
The benchmark rates will be released once a day, exactly between 3:00 and 4:00 London time. On the other hand, real-time indices will be updated throughout the day, even on weekends.
To put it simply, CME Group is currently pushing reliable XRP pricing data to help with risk management, pricing, and the development of financial products using these cryptocurrencies.
By releasing these reference rates, the top US participant in the derivatives market hopes to give firms, investors, and cryptocurrency traders a trustworthy and reliable source of price reference.
XRP Army Responds
The inclusion of XRP in the CME benchmark has sparked a variety of reactions from enthusiastic members of the community. Some speculate that this is a prelude to something bigger, such as an ETF for XRP.
Importantly, XRP has joined the CME Group’s benchmarks, following in the footsteps of Bitcoin (eight years) and Ethereum (six years). Notably, the reference prices of Bitcoin and Ethereum are used as the settlement price for CME’s cryptocurrency futures.
In the CME benchmark, Stellar (XLM), Solana, Polygon, Chainlink, and Litecoin were among the other digital assets that preceded XRP.
CEO of Ripple Brad Garlinghouse Applauds the Initiative
Ripple CEO Brad Garlinghouse has shown significant support for this effort and emphasized the need for widespread adoption. “The market has spoken,” said Garlinghouse, referring to the agreement between CME Group and CF Benchmarks. This development has the potential to deeply impact the future landscape of digital assets by creating a framework for more sophisticated investment instruments such as ETFs.
