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Ripple (XRP) investors just received some bullish news
Find out why Ripple and ICP are earning new respect from Wall Street.
THE Exchange rate risk (Exchange rate risk 1.17%) cryptocurrency, commonly known as Rippleis gaining some respect again on Wall Street. I mean that proverbially, of course. The new sign of respect actually comes from Chicago’s financial district.
On July 11th, CME Group (ECM -0.38%) and CF Benchmarks have announced two new cryptocurrency benchmark rates and real-time indices for Ripple and Internet Computer (PIC 4.46%), starting from July 29. This development highlights the growing integration of digital goods in traditional financial markets and highlights their growing importance in the financial market. It is also a direct vote of confidence in Ripple and ICP from some very traditional voices in investment culture.
Impact on Ripple and ICP
The introduction of real-time benchmark rates and price indices for Ripple and ICP represents a significant step for these cryptocurrencies.
The new pricing services aren’t coming from some shady entity in a dank alley. Formerly known as the Chicago Mercantile Exchange, CME provided pricing and financial derivatives For various goods since 1898. It is still the gold standard of derivatives markets, renowned for its rigorous standards and reliability.
These benchmarks provide transparent and reliable price data, enhancing the credibility and utility of Ripple and ICP in the eyes of institutional investors. Crude oil, soybeans, and physical gold pricing standards are now available for Ripple and some other cryptocurrencies.
For Ripple, this move could lead to greater adoption in financial applications and remittance services. Its fast execution and low transaction costs offer a competitive advantage with the support of a respected data source for current prices. CME Group’s global services are particularly attractive to Ripple, whose primary purpose is to enable efficient transfer of money across international borders. With standardized pricing, financial institutions may find it easier to integrate Ripple into their systems, potentially increasing its value and presence on the market.
Likewise, ICP will benefit from this development by gaining greater visibility and trust among investors. Known for its ambitious goal of decentralizing the Internet, ICP’s inclusion in CME Group’s suite of benchmark rates could attract more institutional interest and investment, facilitating its growth and the realization of its vision.
Digital Assets: A Standard Fare on Wall Street
The launch of these new benchmarks is part of a broader trend of digital assets becoming more entrenched in traditional financial markets. Ahead of the addition of ICP and Ripple, CME Group offers price data for 24 cryptocurrencies such as Bitcoin AND Ethereal.
CME’s cryptocurrency list is a curated and handpicked selection of quality names. You won’t find meme coins Pleases Shiba Inu Dog OR Dogecoin here, for example. Every coin and token with CME pricing and derivatives has at least one robust use case (and, more often, a plethora of robust use cases). Ripple’s international payment capabilities are more than enough to qualify for inclusion.
The CME’s growing coverage of cryptocurrencies suggests a maturing market in which digital assets are no longer viewed as fringe investments. Instead, they are treated as potentially integral components of diversified portfolios.
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, emphasized the importance of these benchmarks in providing clear and transparent pricing. This transparency is critical for market participants to accurately price portfolios and create structured products, reducing the perceived risk of investing in cryptocurrencies.
“These new benchmarks are designed to provide clear and transparent pricing data to a broad range of market participants, enabling them to more accurately price portfolios or create structured products,” Vicioso said in a prepared statement.
A milestone for digital assets
The upcoming launch of Ripple and ICP benchmark rates and real-time indices by CME Group and CF Benchmarks marks a pivotal moment for these cryptocurrencies and the broader digital asset market. As digital assets continue to gain acceptance on Wall Street, investors can expect more reliable and transparent data, further integrating cryptocurrencies into the global financial ecosystem.
Investors in these particular cryptocurrencies should applaud the increased legitimacy that Ripple and ICP should gain from their inclusion in CME Group’s services. Having access to these serious financial instruments certainly cannot hurt Ripple investors and could help a lot in the long run.
Anders Bylund has positions in Bitcoin, Ethereum, and Ripple (XRP). The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Ripple (XRP). The Motley Fool recommends CME Group and Internet Computer. The Motley Fool has a disclosure policy.