Ripple CEO Hails Major Milestone: Launch of Ground-breaking XRP Index Program
Ripple CEO Brad Garlinghouse has expressed excitement following the recent launch of a new reference rate and real-time indices for XRP by the Chicago Mercantile Exchange (CME) in collaboration with CF Benchmarks.
The Overview of the Price Index
The new XRP reference rate and real-time indices, announced earlier this week, will be calculated and published daily by CF Benchmarks starting from July 29, 2024. Market participants will benefit from transparent XRP pricing data, enabling them to accurately assess the value of their portfolios and create structured products.
It’s worth noting that pricing data for Internet Computer (ICP) has also been introduced alongside XRP. The benchmarks for both XRP and ICP will utilize pricing data from major cryptocurrency exchanges such as Coinbase, Bitstamp, Gemini, Kraken, itBit, and LMAX Digital. Each benchmark will be calculated using pricing data from at least two of these exchanges for enhanced accuracy.
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With the addition of XRP and ICP benchmarks, CME CF reference rates and real-time indices now cover pricing data for 24 cryptocurrencies, representing 93% of the investible crypto market capitalization. The XRP and ICP reference rates will be published daily at 4 PM (London Time), while real-time indices will be provided per second.
Garlinghouse Stated the Significant of the XRP Benchmark
Brad Garlinghouse, the CEO of Ripple, emphasized the significance of the XRP benchmark, regarding it as a critical step towards the development of institutional crypto products. He expressed contentment with the introduction of the index, stating that it reflects a response from the market.
The introduction of the XRP benchmark has sparked speculation about the potential launch of an XRP ETF. There are suggestions that the launch of an XRP price index on CME could pave the way for the listing of a CFTC-regulated XRP futures product on the global derivatives marketplace, which is seen as a prerequisite for a spot ETF. However, CME has not disclosed any plans to list an XRP futures product, clarifying that the new XRP benchmark is not a tradable futures product.
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