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CME Group is developing a tokenized cash product with Google Cloud
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The token could be used as collateral in derivatives markets
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The move follows a CFTC pilot allowing crypto assets as margin
CME Explores Tokenized Cash for Collateral
CME Group is developing a tokenized cash product expected to roll out later this year, according to comments from CEO Terrence Duffy. The project is being built in collaboration with Google Cloud and could allow market participants to post tokenized cash as collateral in derivatives trading.
Duffy said CME is working on its own coin that could operate on a decentralized network and be used by other industry participants.
Driven by Regulatory Momentum
The initiative follows a recent pilot program by the Commodity Futures Trading Commission allowing certain cryptocurrencies, including USDC, bitcoin, and ether, to be used as collateral in derivatives markets.
While crypto collateral remains a niche use case, CME’s involvement could accelerate broader institutional adoption.
Risk Controls and Issuer Standards
Duffy emphasized that acceptance of any onchain collateral would depend on the issuer and associated risks. Tokens issued by systemically important financial institutions would be viewed more favorably than those from smaller or less regulated entities.
CME is also preparing to move its crypto futures and options products to n
