Summary
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CME Group Plans XRP Futures: The leading derivatives exchange CME Group intends to launch cash-settled futures contracts for XRP on May 19, pending regulatory approval.
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Contract Details: Two contract sizes will be offered: micro (2,500 XRP) and standard (50,000 XRP), settling based on the CME CF XRP-Dollar Reference Rate calculated daily in London.
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Market Demand and Growth: The launch responds to increasing institutional and retail interest in XRP and its underlying ledger (XRPL), expanding CME’s crypto product suite amidst significant growth in its crypto derivatives volume (up 141% YoY in Q1).
Leading global derivatives marketplace CME Group has revealed its intention to introduce futures contracts based on XRP, with a target launch date of May 19, contingent upon regulatory clearance.
The company made this disclosure in a recent announcement on Thursday.
Contract Specifications and Settlement
To cater to different market participants, CME plans to offer two contract specifications: a micro contract sized at 2,500 XRP and a standard contract representing 50,000 XRP.
Both contracts will be settled in cash, deriving their final settlement price from the CME CF XRP-Dollar Reference Rate, which is computed daily at 4:00 p.m. London time.
This official announcement lends credibility to earlier unconfirmed reports originating from the exchange’s testing environment, which had suggested a February launch for futures linked to XRP and Solana.
At that time, CME had dismissed the leaked information as inaccurate and stated no formal launch plans were set.
Motivation and Market Demand
Giovanni Vicioso, who leads CME’s cryptocurrency product development, identified growing interest in XRP and its underlying technology, the XRP Ledger (XRPL), as the primary motivation behind the new offering.
He stated that the company aims to provide investors with a more streamlined method for managing exposure to XRP, currently ranked as the fourth-largest cryptocurrency by market capitalization.
“Interest in XRP and its underlying ledger (XRPL) has steadily increased as institutional and retail adoption for the network grows, and we are pleased to launch these new futures contracts to provide a capital-efficient toolset to support clients’ investment and hedging strategies,” Vicioso stated officially.
Expanding Crypto Derivatives Suite
The introduction of XRP futures will broaden CME Group’s existing suite of cryptocurrency derivatives, which already includes futures and options contracts for Bitcoin and Ether, as well as recently introduced futures for Solana (SOL).
Growth in Crypto Derivatives Volume
CME Group highlighted strong growth in its cryptocurrency derivatives segment during the first quarter, reporting an average daily trading volume of 198,000 contracts across futures and options.
This volume equated to a notional value of $11.3 billion and marked a 141% increase compared to the same period last year.
Furthermore, average open interest surged to 251,000 contracts, representing an 83% rise year-over-year.
Industry Reception and Use Cases
Industry partners reacted positively to the news.
JB Mackenzie, VP and GM of Futures and International at Robinhood, viewed the listing as “a natural next step in our mission to expand retail access to futures trading.”
Sal Gilbertie, CEO of Teucrium, emphasized XRP’s design for practical financial applications, noting its role in facilitating global value transfers via the XRPL.
Gilbertie also pointed to the rapid initial success of Teucrium’s own 2x Daily Long XRP ETF, which attracted $35 million in assets under management within its first ten trading days.
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