Altcoins
XRP Officially Launches on CME Benchmarks
XRP has officially launched on CME as the derivatives platform adds benchmarks that track the asset following the initial announcement a few weeks ago.
Recall that The Crypto Basic confirmed on July 11 The Chicago Mercantile Exchange (CME), one of the world’s largest derivatives platforms, has announced plans to list XRP benchmarks. The goal was to provide traders with transparent pricing data.
CME Officially Lists XRP Benchmarks
In the most recent development, CME has now added XRP benchmarks on its platform, as previously announced. Notably, a quick glance at the CME’s official platform confirms the listing of two XRP benchmarks: the Real-Time Index for the XRP/USD pair (XRPUSD_RTI) and the Reference Rate for the XRP/USD pair (XRPUSD_RR).
The Reference Rate (XRPUSD_RR) is a daily measure of the US dollar value of XRP. FMC The price of XRP against the US dollar is calculated once a day using trading data from select cryptocurrency exchanges. However, the real-time index (XRPUSD_RTI) provides a continuous and up-to-date price of XRP against the US dollar, which is updated constantly.
The CME calculates rates using a methodology that typically involves taking an average of XRP trading prices on select cryptocurrency exchanges, including Bitstamp and Coinbase, over a given period. This helps reduce the impact of short-term price volatility and outliers.
In particular, the rate may serve as a reference in financial contracts, derivatives and other financial instruments linked to XRP. CME typically provides these rates in collaboration with Crypto Facilities (CF), a UK-based cryptocurrency trading platform.
XRP in Payment subcategory
Interestingly, after listing XRP, CME placed the cryptocurrency under the “Payment and Store of Value” subcategory. This move caught the attention of members of the XRP community, who have consistently argued that XRP is a payment utility token.
It is worth noting that the latest development comes a year after Judge Analisa Torres declared XRP is not a security in the SEC vs Ripple lawsuit. Until now, XRP has been under intense legal pressure whether or not it is considered a security. This has led many platforms to delist it or not recognize it to avoid legal issues with the SEC.
One of the main factors in cryptocurrency adoption is visibility. This visibility includes an easily accessible public sphere that provides real-time rates for the cryptocurrency in question.
CME provides such publicity through its benchmark indices. However, it is only recently that the platform has expressed interest in including XRP, although the token has been around for over a decade.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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