CME Group to Launch 'Tokenized Cash' in Partnership with Google Cloud

The CME Group is set to unveil a new "tokenized cash" product in collaboration with Google Cloud, as announced by CEO Terrence Duffy. This initiative aims to create a "native coin" that will enable market participants to engage with a decentralized network.

While details about whether this will function as an independent asset or a settlement mechanism akin to JPMorgan's JPM Coin remain uncertain, the launch is anticipated in 2026.

This development comes on the heels of a pilot program from the U.S. Commodity Futures Trading Commission (CFTC), which allows the use of digital assets such as USDC, Bitcoin, and Ethereum as collateral in derivatives markets. Although the use of cryptocurrency as collateral is still limited, experts believe CME's innovation could enhance its adoption in repo transactions and securities lending.

Duffy indicated that the new asset will be introduced this year, supported by a custodian bank, and the exchange is exploring various on-chain collateral options, including stablecoins and tokenized money market funds. He emphasized that the choice of tokens will depend on the issuer's credibility and associated risks, with a preference for instruments from major financial institutions rather than lesser-known banks.

Previously, CME Group and Google Cloud collaborated on developing a distributed ledger technology (DLT) solution for tokenized assets. Additionally, the Chicago Mercantile Exchange plans to move to 24/7 trading for cryptocurrency products starting in early 2026.