- CME Group is reviewing a proprietary CME Coin to support digital margin and settlement across regulated markets.
- CME is working with Google on tokenized cash infrastructure set to launch later this year with custodian bank support.
- The exchange is testing onchain collateral models while keeping strict risk controls for institutional clients.
CME Group is reviewing the potential launch of a proprietary digital token as part of its evolving collateral strategy. Chief executive Terry Duffy disclosed the plan during the company’s latest earnings call.
The initiative reflects CME’s broader assessment of how tokenized assets could function across financial markets. The exchange is examining whether a CME-issued token could operate on a decentralized network. The review remains exploratory and does not include a launch timeline.
CME Coin Review Centers on Margin Efficiency and Risk Control
CME’s evaluation focuses on how a proprietary token could support margin and settlement processes. The exchange is assessing different forms of digital collateral. These include tokenized cash and exchange-issued digital assets. CME aims to improve efficiency for institutional clients. At the same time, it wants to avoid adding operational or market risk. Therefore, any digital margin tool would face strict internal review. Risk management remains central to the assessment.
Tokenized Cash Project Advances With Google Partnership
Alongside the proprietary token review, CME is developing a tokenized cash solution. The project is scheduled to launch later this year. CME is working with Google on the infrastructure layer. A regulated custodian bank will facilitate the related transactions. The structure is designed to support wholesale use cases. Tokenized cash would allow collateral to move more efficiently between market participants. The initiative builds on CME’s efforts to modernize post-trade processes.
Issuer Quality Will Shape Digital Collateral Acceptance
CME plans to scrutinize digital assets before accepting them as collateral. The review will consider issuer credibility and associated risks. Assets from systemically important institutions will receive closer attention. In contrast, tokens from weaker issuers may face limits or discounts. This approach aligns with CME’s broader market protection mandate. The exchange does not intend to accept assets it cannot fully assess. As a result, digital collateral adoption will remain measured. Last year, CME Group announced plans to launch 24/7 cryptocurrency futures and options trading starting in early 2026.
CME’s digital asset strategy develops alongside other market changes. The exchange recently confirmed plans for expanded crypto derivatives access. It also continues aligning its crypto offerings with established market infrastructure. It recently revealed plans to launch futures for Cardano and Chainlink. Together, the proprietary token review and tokenized cash project highlight CME’s cautious move toward onchain finance.
