Chicago-based derivatives exchange CME Group is considering launching its own digital token as it explores how tokenized assets could be used as collateral in financial markets, according to comments from CEO Terry Duffy.
Talking about the company’s earnings callDuffy said CME is looking at various forms of margin, including tokenized cash and a CME-issued token that could run on a decentralized network. He said:
We’re not just looking at tokenized cash […] We are considering various initiatives related to our own coin that we could potentially place on a decentralized network that could be used by other participants in our industry.
He added that collateral issued by a “systemically important financial institution” could provide market participants with greater comfort than tokens issued by a “third or fourth tier bank attempting to issue a token for margin.”
Duffy’s mention of tokenized cash points to a partnership with Google announced in March, in which CME Group and Google Cloud announced that they had begun piloting a blockchain-based infrastructure for wholesale payments and asset tokenization using Google Cloud’s Universal Ledger.
A potential token issued by CME would be a separate initiative, and the exchange has not specified how it would function.
CME Group is a derivatives exchange serving the futures and options markets for interest rates, equities, commodities and cryptocurrencies.
In January, CME said it planned to expand its offering of regulated cryptocurrencies by listing futures contracts tied to Cardano (ADA), Chainlink (LINK) and Stellar (XLM). Separately, it has agreed with Nasdaq to unify its cryptocurrency index offering under the Nasdaq-CME Crypto Index.
The exchange also recently said it plans to introduce 24/7 trading in cryptocurrency futures and options starting in early 2026, pending regulatory approval.
Related: CME launches Bitcoin Volatility Index as institutional cryptocurrency trading matures
Amid regulatory debate, banks are increasing their efforts in stablecoins and payment tokens
While CME Group has not announced specific details about its potential proprietary token, Duffy’s comments link the derivatives exchange to a broader effort by customary financial institutions, particularly banks, to explore blockchain-based tokens for payments and settlements.
In July, Bank of America said it was exploring stablecoins to modernize its payments infrastructure, and CEO Brian Moynihan described them as a potential transaction tool for moving U.S. dollar and euro-denominated funds through the bank’s global payments systems.
JPMorgan launched JPM Coin in November, issuing a blockchain-based token that represents US dollar deposits held at the bank. The token is available to institutional customers and can be used to transfer funds on Base, a blockchain developed by Coinbase that enables onchain payments and settlements.
Fidelity Investments said it plans to soon launch a U.S. dollar-backed stablecoin called Fidelity Digital Dollar (FIDD), expanding its development into digital assets after receiving conditional approval to operate a domestic custodian bank.
Still, as U.S. banks move forward with stablecoin and token initiatives, they are simultaneously opposing income-producing stablecoins, fueling an lively political 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 expanded significantly. Its market capitalization is about $305.8 billion, according to DefiLlama, up from about $260 billion when the law was passed. data.
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