CME Group Announces First Trades of XRP Futures

Rhea-AI Summary

CME Group has launched its new XRP futures trading contracts, with the first trade cleared by Hidden Road on May 18, 2025. The launch saw impressive initial traction with over $19 million in notional volume traded on the first day. The new offering includes both micro-sized (2,500 XRP) and larger-sized (50,000 XRP) contracts, which are cash-settled using the CME CF XRP-Dollar Reference Rate calculated daily at 4:00 p.m. London time.

This expansion of CME's cryptocurrency suite aims to provide investors with liquid, capital-efficient tools for cryptocurrency investment and hedging strategies, marking a significant step in the institutional adoption of digital assets.

Positive

• Strong initial trading volume of $19 million on the first day
• Expansion of cryptocurrency product suite enhances CME's market offering
• Provides institutional investors with regulated XRP trading instruments
• Offers flexibility with both micro-sized and larger-sized contracts

Negative

• None.

Insights

Financial Markets Strategist

CME's XRP futures launch enhances institutional crypto adoption with $19M first-day volume, creating regulated hedging opportunities for traders.

CME Group's launch of XRP futures represents a significant development in the cryptocurrency market infrastructure. The debut saw impressive first-day trading volume of $19 million in notional value, indicating strong initial demand from institutional traders. The introduction of both micro-sized (2,500 XRP) and standard-sized (50,000 XRP) contracts demonstrates CME's strategic approach to making these instruments accessible to different market participants.

The cash-settled structure based on the CME CF XRP-Dollar Reference Rate provides a standardized benchmark for valuation, addressing one of the key concerns institutional investors have had about cryptocurrency markets. This addition to CME's regulated cryptocurrency suite is particularly notable because it enhances the legitimacy and institutional adoption of XRP specifically, which has historically faced regulatory uncertainties.

Hidden Road's involvement as the clearer for the first block trade highlights the growing integration between traditional financial intermediaries and digital asset markets. For market participants, these futures contracts offer risk management tools with the capital efficiency and deep liquidity that CME's markets are known for. The ability to hedge XRP exposure through a regulated exchange rather than directly in spot markets addresses counterparty risk concerns while providing more sophisticated trading strategies for institutional investors managing cryptocurrency portfolios.

CHICAGO, May 20, 2025 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced its new XRP futures are now available for trading. The first trade, a block, took place on Sunday, May 18, and was cleared by Hidden Road.

"We are pleased to see such early support for our latest futures contracts, with more than $19 million in notional volume traded the first day," said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. "The addition of XRP and Micro XRP futures to our leading, regulated cryptocurrency suite will provide investors with the deeply liquid, capital-efficient tools they need to support their growing cryptocurrency investment and hedging strategies."

"We are excited to clear the first block trade in CME Group XRP futures," said Noel Kimmel, President of Hidden Road and CEO of Hidden Road's Futures Commission Merchant. "This is a significant milestone for Hidden Road, and the continued institutional adoption of digital assets – particularly in enhancing liquidity and risk management capabilities around XRP. As one of the largest non-bank prime brokers and FCMs, Hidden Road remains focused on delivering seamless global market access and driving innovation at the intersection of traditional finance and digital assets."

CME Group XRP futures are available in both a micro-sized (2,500 XRP) and a larger-sized contract (50,000 XRP), and are cash-settled to the CME CF XRP-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of XRP and is calculated daily at 4:00 p.m. London time.

For more information on these products, please visit: www.cmegroup.com/xrp.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. 

CME-G

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SOURCE CME Group

FAQ

What is the size of CME Group's new XRP futures contracts?

CME Group offers two contract sizes: a micro-sized contract of 2,500 XRP and a larger-sized contract of 50,000 XRP.

How much trading volume did CME's XRP futures achieve on its first day?

CME Group's XRP futures achieved over $19 million in notional trading volume on its first day of trading.

How are CME Group's XRP futures contracts settled?

The contracts are cash-settled based on the CME CF XRP-Dollar Reference Rate, calculated daily at 4:00 p.m. London time.

When did CME Group launch XRP futures trading?

CME Group launched XRP futures trading with the first trade taking place on Sunday, May 18, 2025.

Which company cleared the first XRP futures trade on CME?

Hidden Road cleared the first block trade of CME Group's XRP futures.