Coinspeaker Ripple CEO Says XRP Index from CF Benchmarks Will Fuel Adoption
Brad Garlinghouse, the CEO of blockchain payments firm Ripple Labs Inc, believes that the recent action taken by CME Group Inc (NASDAQ: CME) and CF Benchmarks to launch an XRP reference rate (index) is a key step towards increasing the coin’s adoption.
Precisely, the Ripple executive opined that the first step towards institutional crypto products is to have trusted benchmark reference rates. Interestingly, this is what CME Group has done with XRP and Internet Computer (ICP). The firm achieves this feat in collaboration with CF Benchmarks, a provider of cryptocurrency benchmark indices.
CF Benchmarks and CME Group XRP Index
On Thursday, popular derivatives marketplace CME Group took to X to announce that the new XRP and Internet Computer reference rates are designed to provide the US dollar price of each digital asset.
These reference rates and indices which are not tradable futures products, are scheduled to be calculated and published starting from July 29. Notably, CF Benchmarks is responsible for making the publication daily.
CME Group highlighted that the new benchmarks are designed to provide a broad range of market participants with clear and transparent pricing data. Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products strongly believes that this will help these market participants to accurately value portfolios or create structured products.
“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, helping clients everywhere to better manage their risk,” Vicioso noted.
Like other existing CME CF Benchmark reference rates and real-time indices, these new benchmarks will utilize pricing data from some leading crypto exchanges and trading platforms. These exchanges are earmarked for the CME CF Benchmark suite of reference rates and real-time indices. They get to feature on platforms like Bitstamp, Coinbase Global Inc (NASDAQ: COIN), Gemini, itBit, Kraken, and LMAX Digital, at least a minimum of two of these exchanges.
Similarly, the new reference rates and indices will be calculated and administered to the same exacting standards as the other benchmarks in the CME CF Single Asset Series. This is to ensure that clients continue to enjoy the same level of confidence as they engage with these new assets.
Good Break for XRP
The XRP featured reference rate is one unique boost for the coin which has stayed crunched with the Ripple versus US SEC lawsuit. Notably, CF Benchmarks perceives this offering as an avenue to support the expansion and maturation of this asset. The focus is on when clients start to spread their activity across a wider range of cryptocurrencies, picking XRP alongside.
Pending when the Ripple lawsuit will finally close, institutional investors may see nurse more confidence in XRP. This reference rate might also serve as a precursor in the pursuit of the XRP Exchange Traded Fund (ETF) product.
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Ripple CEO Says XRP Index from CF Benchmarks Will Fuel Adoption
