CME Group says tokenized cash coin developed with Google to roll out this year for crypto collateral

CME Group is exploring a "tokenized cash" offering that will come out in 2026, reportedly under development with Google Cloud, according to CME Chairman and CEO Terrence Duffy on an earnings call on Wednesday.

In response to a question from a Morgan Stanley researcher about tokenized collateral, Duffy said the topic is "pretty deep" while noting the firm is working on its "own coin that we could potentially put on a decentralized network for other industry participants to use."

It was not immediately clear whether Duffy was referring to a standalone CME-issued token or simply a tokenized cash product used for settlement and margin, similar to JPMorgan Chase’s JPMD deposit token. The Block has reached out to CME Group for clarification.

CME is the world's leading derivatives trading venue. Over the past several years, the firm has begun to dip its toe into the crypto ecosystem, first by offering futures products for bitcoin, and gradually expanding its offerings to include ETH, SOL, and XRP.

Duffy's comments come in the wake of the Commodity Futures Trading Commission announcing it would begin allowing certain cryptocurrencies to be used as collateral in derivatives markets, including Circle's USDC stablecoin as well as bitcoin and ether, as part of a pilot program.

While firms are gradually experimenting with or researching crypto collateral for derivatives trading, it is still largely a niche area. Late last year, for instance, Kraken began allowing traders to post crypto collateral in the European Union.

The CME's tokenized cash product could accelerate the adoption of crypto collateral, including expanding crypto’s use as margin for other financial transactions like repo agreements, securities lending, and secured lending.

CME coin

Duffy noted its tokenized cash product would roll out this year, using "another depository bank that will help facilitate those transactions." He also said the CME may be open to other forms of onchain collateral, like stablecoins and tokenized money market funds.

"On the tokens and what we would accept going forward, all depends on who is issuing the token and giving it to us," Duffy said. "And it would also depend on the risks associated with that token. Would we haircut it to a point where it's even worth being taken or not? And what's the entity that's issuing the token to give us for margin?"

"So right now, we are looking at different forms of margin, but we are not going to put the enterprise at risk by taking something that we can't get our arms around on a token,” Duffy added. “So if you were to give me a token from a systemically important financial institution, I would probably be more comfortable than maybe a third- or fourth-tier bank trying to issue a token for margin. That's probably something I would not accept."

CME is working to move its cryptocurrency futures and options to round-the-clock trading in early 2026.

"While not all markets lend themselves to operating 24/7, client demand for around-the-clock cryptocurrency trading has grown as market participants need to manage their risk every day of the week," Tim McCourt, CME's global head of equities, FX, and alternative products, said in October.

Other notable institutions are experimenting with blockchain-based funds that could function as a collateral option, like BlackRock’s BUIDL money market fund, backed primarily by U.S. Treasurys, and JPMorgan’s tokenized deposit token, backed by bank deposits.