Ripple CEO Spots Prospect Of CF Benchmarks XRP Index Product
Blockchain payments firm Ripple Labs Inc. has acknowledged the prospect of CF Benchmarks XRP Index product.
CME Group Introduces XRP Reference Rates
On Wednesday, the Chicago Mercantile Exchange (CME) announced the launch of new reference rates and real-time indices for Ripple’s XRP and Internet Computer (ICP).
Based on its design, the new benchmarks will provide transparent pricing data to help market participants accurately value their portfolios. Markedly, the official launch of the new reference rates and indices is scheduled for July 29. The news immediately sparked speculations about a potential XRP ETF launch.
Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, stated that “With 24 cryptocurrencies in our suite of CME CF References Rates and Real-Time Indices, we will provide pricing data across more than 93% of the investible cryptocurrency market capitalization.”
In response to the news of the reference rates and real-time indices, Ripple CEO Brad Garlinghouse noted that this is the first step towards institutional crypto products.
First step towards institutional crypto products is to have a trusted benchmark reference rate. Nice to see @CMEGroup and @CFBenchmarks collaborate on this for an XRP index. The market has spoken. https://t.co/cKqqMLswdw
— Brad Garlinghouse (@bgarlinghouse) July 11, 2024
Therefore, he acknowledged the work put in by both CME Group and the CF Benchmarks towards introducing the XRP Index, while adding that “the market has spoken.”
XRP ETF Potentiality Increases
Meanwhile, the new benchmarks for XRP and ICP will use pricing data from leading crypto exchanges such as Bitstamp, Coinbase, and Kraken.
This is to ensure that market participants have easy access to accurate and reliable data at all times. Notably, the daily reference rates will be a reflection of the United States dollar price of each asset, which is published at 4 p.m. London time. On the other hand, the real-time indices will be updated every second.
CF Benchmarks played a key role in the expansion of the asset class. Sui Chung, CEO of CF Benchmarks expressed enthusiasm towards the announcement, citing client’ increasing activity towards a diversified range of cryptos.
The talks and speculations about a potential XRP ETF is still ongoing. Previously, senior Bloomberg ETF analyst James Seyffart highlighted that the success of an ETF for Ripple’s native crypto is largely dependent on its presence in a major derivative exchange like CME. This makes the latest development a big deal for XRP with respect to a possible ETF.
Even Ripple President Monica Long has given her strong support to an XRP ETF.
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