The leading platform for trading regulated derivatives, CME Group, is developing ‘tokenized cash’ in partnership with Google Cloud, reports The Block, citing the exchange’s head, Terrence Duffy.
According to the top executive, work is underway on a ‘proprietary coin’ that market participants will be able to use through a decentralized network to interact with other industry players.
It remains unclear whether this will be a standalone asset or a settlement mechanism for margin collateral similar to JPM Coin from JPMorgan.
The product launch is expected in 2026.
Duffy’s announcement followed a similar initiative by the CFTC: the American regulator launched a pilot program allowing the use of digital assets like USDC, Bitcoin, and Ethereum as collateral in derivatives markets.
Collateral in crypto assets remains a niche practice, despite experiments by individual players such as Kraken. Experts from the publication believe that CME’s new tool will accelerate the integration of such mechanisms into repo transactions and securities lending.
Duffy noted that the launch of the new asset will take place this year with the support of a custodian bank. The exchange is considering various types of on-chain collateral, including stablecoins and tokenized money market funds.
The head of CME explained that the adoption of tokens depends on the issuer and associated risks — the company does not intend to risk its business for unproven instruments. The exchange will prefer tools from systemically important financial institutions over assets from ‘third or fourth tier’ banks.
Previously, CME Group and Google Cloud had already partnered to create a DLT solution for tokenized assets.
Earlier, at the beginning of 2026, the Chicago Mercantile Exchange will transition cryptocurrency product trading to a ’round-the-clock’ mode.