CME Group Launches XRP Futures, Unlocking a Powerful Gateway for Institutional Capital to Flood into the XRP Ecosystem

Chicago-based CME Group officially introduced XRP and Micro XRP futures to its crypto derivatives lineup on May 19, confirming the launch

Crypto behemoth CME Group has begun offering regulated futures contracts for XRP, marking a key milestone for institutional involvement in the asset.

XRP Futures Arrive in the U.S. as CME Expands Crypto Derivatives Lineup

As announced Friday, CME Group has added XRP and Micro XRP futures to its lineup of crypto derivatives products.

Excited to report that @HiddenRoad_ cleared the first block trade on CME at the opening! огромное спасибо to the entire teams at @CCIV and HR for their collaboration to get this done. We have a lot more in store for Q2. Stay tuned…

— Brad Garlinghouse (@BradGarlinghouse) May 19, 2023

The Chicago-based exchange, which operates one of the largest derivatives marketplaces in the world across asset classes, confirmed the launch on social media. CME operates a CFTC-regulated futures platform called Globex, and also offers a Clearport service for brokers to provide clients with leveraged products.

The new futures contracts will be available in two sizes: standard XRP futures with 50,000 XRP per contract and Micro XRP futures with 2,500 XRP per contract. Both types of contracts are priced in USD per XRP and offer multiple trading strategies, including outright, block, or BTIC (Basis Trade at Index Close). The contracts are cash-settled, providing efficient access to XRP's price movements.

The contracts will trade on CME Globex and Clearport from Sunday evening through Friday afternoon, with scheduled trading breaks. CME’s futures are regulated by the U.S. Commodity Futures Trading Commission (CFTC) and offer transparent pricing and standardization through settlement to the CME CF XRP-Dollar Reference Rate.

Institutions May Now Easily Gain XRP Exposure

The move by CME comes as several other financial institutions are also entering the cryptocurrency market.

Earlier this year, BlackRock (NYSE:) began offering a Bitcoin private trust to its institutional clients, while Goldman Sachs is also planning to launch its own crypto products.

The availability of XRP futures on a regulated venue like CME could significantly advance institutional adoption of the asset. Financial institutions have historically required clear legal frameworks and regulated financial products before allocating capital to cryptocurrencies.

With the addition of XRP to CME's platform, asset managers, hedge funds, and proprietary trading firms may now gain exposure to the asset through familiar infrastructure without needing to rely on less transparent spot markets.