The CME Group, a leading platform for trading regulated derivatives, is developing "tokenized cash" in partnership with Google Cloud, according to The Block, citing exchange CEO Terrence Duffy.
Duffy stated that they are working on a "native coin" that market participants can 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 follows a related initiative from the CFTC: the U.S. regulator has launched a pilot program allowing the use of digital assets like USDC, Bitcoin, and Ethereum as collateral in derivatives markets.
Using crypto assets as collateral remains a niche practice, despite experiments by certain players like Kraken. Experts 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 occur 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 CME chief explained that the adoption of tokens depends on the issuer and associated risks—the company does not intend to jeopardize its business for untested instruments. The exchange prefers instruments from systemically important financial institutions over assets from "third or fourth tier" banks.
Previously, CME Group and Google Cloud had partnered to create a DLT solution for tokenized assets.
It is worth noting that at the beginning of 2026, the Chicago Mercantile Exchange will transition to "round-the-clock" trading for crypto products.