CME Is Launching Futures Trading on XRP

The CME is launching futures trading on XRP on May 19, pending regulatory review. It will allow both micro and large contracts, from 2,500 to 50,000 XRP

The Chicago Mercantile Exchange (CME) will be launching futures trading for Ripple’s XRP on May 19, pending regulatory approval. The institution will be offering micro and large contracts of 2,500 to 50,000 XRP.

The CME futures will offer several advantages for the asset. In addition to the institution offering substantial liquidity, it will be treating the asset like a commodity, similar to Bitcoin (BTC) and Ethereum (ETH). This could, in turn, boost the chances of an XRP ETF approval.

CME To Launch XRP Futures

XRP futures are financial contracts that let traders speculate on the future price of XRP without owning the actual XRP coins. It will allow institutional and professional traders to hedge risk or speculate on XRP prices using regulated instruments.

CME’s involvement is significant—it’s the world’s largest derivatives exchange, and adding XRP gives more legitimacy and market depth.

The CME has been interested in crypto futures trading over the past few months. It hinted at launching Solana (SOL) and XRP futures in January but couldn’t officially commit to the strategy until approval.

The CME first began Solana futures trading last month and is set to open XRP futures on May 19:

“While overdue in a bunch of ways, this is an incredibly important and exciting step in the continued growth of the XRP market!”

The CME's involvement is significant, as it's the world's largest derivatives exchange, and the addition of XRP will bring more legitimacy and market depth to the asset.

The institution has been interested in launching crypto futures for some time now. Earlier this year, it hinted at the possibility of adding Solana and XRP futures to its platform. However, at the time, it was still awaiting approval from the Commodity Futures Trading Commission (CFTC) to proceed.

The CME has now received the necessary approvals and will be introducing a full range of futures contracts for Solana, beginning with the institution’s micro and large contracts for the asset. These contracts will be available in May, allowing for both micro and large traders to join in.

After several months of applying for permission to list XRP futures, the CME has finally been given the green light by the CFTC. Coinbase (NASDAQ:) futures trading was also recently approved by the CFTC earlier this week.

The CME will be offering futures contracts that are small in size, starting from 2,500 XRP, and go up to 50,000 XRP. The institution said it will be offering this flexibility to ensure there is "optimal liquidity and pricing."

The futures will be cash-settled and based on the CME’s XRP-Dollar reference rate, which is calculated daily. It takes into account the prices in major XRP markets around the world and will be published at 4 p.m. ET.

The futures will be available for trading on the CME ClearMark platform and will be subject to the rules and regulations of the CME Group.