CME Group has confirmed it is exploring a proprietary digital token while preparing to extend trading hours for its cryptocurrency futures and options. CEO Terry Duffy disclosed the token initiative as the exchange moves to meet institutional demand for continuous risk management.
CME has told investors and clients that it is evaluating the creation of a proprietary token designed to function as standardized collateral within its clearing ecosystem. The initiative is framed as an on-chain solution aimed at reducing operational friction while enabling collateral to be available at all times, a key requirement as trading windows extend beyond traditional market hours.
This assessment is closely tied to CME’s plan to introduce round-the-clock trading for its cryptocurrency futures and options. The exchange is targeting an early- to second-quarter 2026 launch, subject to regulatory approval. Under this timeline, both the proposed token and tokenized cash instruments are positioned as core infrastructure needed to support continuous liquidity, margining, and settlement.
According to CME, growing client demand is the primary driver behind the shift. Institutional participants increasingly want the ability to hedge risk outside standard hours, reflecting the reality that spot crypto markets trade continuously. The exchange pointed to strong activity in 2025, with nearly $3 trillion in notional volume traded and a sharp acceleration in daily turnover toward the end of the year.
What traders and treasuries should expect
Within this framework, CME is exploring several complementary components. A proprietary token is being evaluated as a standardized, low-risk form of collateral to improve capital efficiency across margin and settlement processes. In parallel, tokenized cash—developed in collaboration with Google—is scheduled for launch in 2026 and is intended to act as an always-available on-chain cash equivalent. Together, these tools are meant to underpin the planned transition to 24/7 trading.
The regulatory environment has also become more accommodating. CME highlighted a recent CFTC pilot program that permitted certain digital assets, including USDC, bitcoin, and ether, to be posted as collateral. This development has lowered structural barriers to tokenized collateral and strengthened the case for integrating digital assets more deeply into cleared derivatives markets.
Taken together, the rollout aims to transform collateral from a static balance-sheet cost into a more dynamic, flow-based utility. For trading desks, continuous futures and options markets could reduce hedging gaps and reshape intraday funding and basis dynamics. For corporate treasuries and institutional allocators, tokenized cash may translate into faster settlement cycles and reduced operational drag on capital.
That said, execution risks remain. Regulatory approvals, operational resilience, and sufficient liquidity during off-peak hours will be critical to success. Market participants should also anticipate shifts in open interest distribution, margin usage patterns, and liquidity behavior as CME’s crypto derivatives markets adapt to a truly continuous trading model.
