The world's largest derivatives marketplace is exploring the issuance of a proprietary token. CEO Terry Duffy announced during the Q4 2025 earnings call that CME Group is investigating its own coin. This token would serve as collateral and margin in derivatives trading.
With a market capitalization of approximately $105 billion, the company would enter direct competition with JPMorgan's recently launched deposit token. This token is intended to run on a decentralized network that other industry participants can also use. CME has not yet specified whether the coin will function as a stablecoin, settlement token, or in another structure. In parallel, the company plans to introduce a separate "tokenized cash" solution together with Google Cloud later this year.
"We're looking at different initiatives with our own coin that we could potentially put out on a decentralized network so that other industry participants can use it" - Terry Duffy, CEO CME
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Two separate token initiatives
CME is currently pursuing two different tokenization projects. The first initiative is based on a partnership with Google Cloud, announced in March 2025. It uses the Google Cloud Universal Ledger (GCUL), a programmable, distributed ledger solution on a private, permissioned network. CME successfully completed Phase 1 of this integration. Direct testing with market participants has been underway since then, and a custodian bank facilitates the transactions.
The second initiative is the proprietary "CME Coin," which is still in the exploration phase. Unlike the Google solution, this token is intended to operate on a decentralized network. Duffy left open which blockchain platform would be considered. Both projects target the same use case: more efficient collateral management in derivatives trading.
Regulatory window opens
The Commodity Futures Trading Commission (CFTC) launched the Digital Assets Pilot Program in December 2025. It permits Bitcoin, Ethereum, and USDC as collateral for derivatives positions at Futures Commission Merchants. Initially, the program runs for three months for these three assets. The CFTC also issued guidance allowing tokenized real-world assets (RWAs) such as Treasuries, corporate bonds, and money market funds as collateral.
Tokenized solutions offer a significant advantage in efficiency. Instant settlement and 24/7 availability replace traditional T+1 or T+2 settlement processes. By August 2026, the CFTC plans to finalize technical rule changes for collateral, margin, clearing, and settlement using blockchain technology. CME is positioning itself in an opening regulatory environment.
JPMorgan as industry precedent
CME is not the first financial institution to launch its own token. JPMorgan introduced the JPM Coin with the ticker JPMD for institutional clients in November 2025. This "deposit token" runs on Base, Coinbase's Ethereum Layer 2. It enables near-instant settlement around the clock. First customers include B2C2, Coinbase, and Mastercard.
Deposit tokens differ from classic stablecoins in a key way: they are digital claims on existing bank deposits and can be interest-bearing. Duffy explicitly referenced JPMorgan as a comparison during the earnings call. Systemically important financial institutions offer greater security than smaller issuers, in his view. CME also emphasized risk control, stating that the company will not accept tokens over which it lacks adequate control.
"If you were to give me a token from a SIFI, I'd probably be a lot more comfortable than maybe a third or fourth tier bank that's trying to put out a token for margin" - Terry Duffy
Record crypto volumes at CME
The timing of the token initiative coincides with CME's strongest crypto year since entering the market in 2017. Average daily volume in crypto derivatives reached 278,000 contracts. This corresponds to approximately $12 billion, an increase of 139 percent compared to the previous year. Total volume in 2025 reached nearly $3 trillion in notional value.
Micro Ether futures led with 144,000 contracts daily. Micro Bitcoin futures followed with 75,000 contracts, while standard Ether futures reached 19,000 contracts per day. In Q4 2025, trading volume increased 92 percent to over $13 billion in average daily volume. These records emerged despite price declines in Bitcoin and Ethereum.
According to CoinGlass data, CME overtook Binance in institutional crypto derivatives trading in 2025. Across all asset classes, CME recorded a record daily volume of 27.4 million contracts. This represents an increase of 7.5 percent compared to the previous year. Q4 revenue was $1.65 billion, with adjusted earnings per share at $2.77.
Next steps in crypto
CME plans to launch Cardano, Chainlink, and Stellar futures on February 9, 2026, subject to regulatory approval. Cardano contracts cover 100,000 tokens (standard) and 10,000 tokens (micro). Chainlink futures include 5,000 tokens (standard) and 250 tokens (micro). Stellar contracts cover 250,000 Lumens (standard) and 12,500 Lumens (micro).
Around-the-clock trading for all crypto futures and options is planned for Q2 2026. Duffy explained the move by noting that customers want to hedge their exposure to cash markets. These markets also trade on weekends. The rollout of the tokenized cash solution with Google is also scheduled for 2026. Meanwhile, the proprietary CME Coin remains in the exploration phase for now.
