New crypto coin for derivatives collateral
CME Group Chairman and CEO Terrence Duffy announced that the company is developing a new tokenized fiat-based product that can be used as collateral for crypto derivatives trading.
According to Duffy, this new coin will be launched this year and will allow traders to use it instead of traditional fiat currencies like the US dollar or euro to post margin or guarantees for Bitcoin, Ethereum and other crypto asset contracts.
Such a solution can be an important step towards the institutionalization of the crypto market. The use of tokenized fiat money as collateral will reduce the risks of volatility and liquidity inherent in purely cryptocurrency assets. It will also provide traders with a new tool for risk management.
The CME Group and Google initiative also demonstrates the growing interest of traditional financial players in applying blockchain technology in their activities. Major companies are increasingly looking for ways to integrate cryptocurrencies and other digital assets into their products and services.