CME Group Weighs Issuing Proprietary Token for Collateral

Cointelegraph reports that Chicago-based derivatives exchange CME Group is weighing the launch of its own digital token and other tokenized assets for use as collateral and margin, CEO Terry Duffy said on an earnings call. Duffy said CME is reviewing different forms of margin, including tokenized cash and a CME-issued token that could operate on a decentralized network: "Not only are we looking at tokenized cash […] we’re looking at different initiatives with our own coin that we could potentially put on a decentralized network for other of our industry participants to use." Duffy added that collateral issued by a "systemically important financial institution" may offer greater comfort to market participants than tokens issued by a "third or fourth-tier bank." He pointed to a March collaboration with Google to pilot blockchain-based infrastructure for wholesale payments and asset tokenization using Google Cloud’s Universal Ledger, and the exchange said the potential CME-issued token would be a separate initiative without specifics on

United States, Chicago