CME Group eyes token, pilots tokenized cash with Google
CME Group is considering introducing a proprietary digital token and is testing tokenized cash infrastructure with Google, CEO Terry Duffy said during the company’s earnings call.
Duffy stated that the exchange is evaluating alternative forms of margin, including tokenized cash and a CME-issued token that could run on a decentralized network. He added that collateral issued by a “systemically important financial institution” could be more reassuring to market participants than tokens from a “third or fourth-tier bank” used for margin.
Duffy’s comments on tokenized cash refer to a collaboration announced in March, when CME Group and Google Cloud began piloting blockchain-based infrastructure for wholesale payments and asset tokenization using Google Cloud’s Universal Ledger. A potential CME-issued token would be a separate initiative, and the exchange has not disclosed how such a token would function.
CME Group operates futures and options markets across interest rates, equities, commodities and cryptocurrencies. In January, the company said it plans to broaden its regulated crypto lineup by listing futures contracts linked to Cardano (ADA), Chainlink (LINK) and Stellar (XLM). Separately, CME and Nasdaq agreed to consolidate their crypto index offerings under the Nasdaq-CME Crypto Index. CME also said it intends to launch 24/7 trading for cryptocurrency futures and options starting in early 2026, subject to regulatory approval.
Banks broaden stablecoin and payment token initiatives amid ongoing regulatory debate
Duffy’s remarks align with a wider move by traditional financial institutions to explore blockchain-based tokens for payments and settlement. In July, Bank of America said it was examining stablecoins to modernize its payments infrastructure, with CEO Brian Moynihan describing them as a potential transactional tool for moving U.S. dollar and euro funds through the bank’s global systems.
JPMorgan rolled out JPM Coin in November, issuing a blockchain-based token representing U.S. dollar deposits held at the bank. The token is available to institutional clients and can be used to transfer funds on Base, a blockchain developed by Coinbase, enabling onchain payments and settlement.
Fidelity Investments said it plans to introduce a U.S. dollar–backed stablecoin called the Fidelity Digital Dollar (FIDD), expanding its digital-asset offerings after receiving conditional approval to operate a national trust bank.
While U.S. banks advance stablecoin and token projects, they are also opposing yield-bearing stablecoins, contributing to an active policy debate under the CLARITY Act, which is currently before Congress.
Since the GENIUS Act passed in July 2025, the stablecoin market has expanded to around $305.8 billion in market capitalization, up from about $260 billion when the law was enacted, according to DefiLlama data.
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