CME Group Weighs Issuing Proprietary Token for Collateral and Margin

Chicago-based derivatives exchange CME Group is weighing the launch of its own digital token as it explores how tokenized assets could be used as collateral across financial markets, according to comments from CEO Terry Duffy.

Speaking on a company 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. He said:

He 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 trying to issue a token for margin.”

Duffy’s reference to tokenized cash points to a collaboration with Google announced in March, in which CME Group and Google Cloud said they had begun piloting blockchain-based infrastructure for wholesale payments and asset tokenization using Google Cloud’s Universal Ledger. 

The potential CME-issued token would be a separate initiative, and the exchange did not specify how it would function.

CME Group is a derivatives exchange that operates futures and options markets across rates, equities, commodities and cryptocurrencies.

In January, CME said it plans to expand its regulated crypto offerings by listing futures contracts tied to Cardano (ADA), Chainlink (LINK) and Stellar (XLM). Separately, it agreed with Nasdaq to unify its crypto index offerings under the Nasdaq-CME Crypto Index.

The exchange also recently said it plans to introduce 24/7 trading for cryptocurrency futures and options beginning in early 2026, pending regulatory approval.

Related: CME launches Bitcoin volatility index as institutional crypto trading matures

Banks expand stablecoin and payment token efforts amid regulatory debate

While CME Group did not announce specific details about its potential proprietary token, Duffy’s comments place the derivatives exchange alongside a broader push by traditional financial institutions, particularly banks, to explore blockchain-based tokens for payments and settlement.

In July, Bank of America said it was exploring stablecoins to modernize its payments infrastructure, with CEO Brian Moynihan describing them as a potential transactional tool for moving US dollar and euro-denominated funds through the bank’s global payment systems.

JPMorgan rolled out JPM Coin in November, issuing a blockchain-based token that represents US dollar deposits held at the bank. The token is available to institutional clients and can be used to move funds on Base, a blockchain developed by Coinbase, enabling onchain payments and settlement.

Fidelity Investments said it soon plans to launch a US dollar–backed stablecoin called the Fidelity Digital Dollar (FIDD), extending its digital-asset push after receiving conditional approval to operate a national trust bank.

Still, as US banks move ahead with stablecoin and token initiatives, they are simultaneously pushing back against yield-bearing stablecoins, fueling an active policy clash with the crypto industry under the CLARITY Act, which is being debated in Congress.

Since the passage of the GENIUS Act in July 2025, the stablecoin market has grown considerably. It has a market capitalization of around $305.8 billion, up from around $260 billion when the law was passed, according to DefiLlama data.

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