Ten months ago, the CME announced plans to collaborate with Google to tokenize cash and assets on Google Cloud Universal Ledger (GCUL), the tech firm’s permissioned distributed ledger. In an earnings call yesterday, CEO Terry Duffy s revealed plans likely extending beyond the Google partnership when he spoke about tokenized collateral, tokenized deposits, and the potential for the CME’s own coin, presumably a stablecoin.
“We’re looking at initiatives involving our own coin that we could potentially put on a decentralized network for other of our industry participants to use,” he said. The CME’s interest in tokenization stems from the ability to instantly post margin for derivatives contracts.
He confirmed that the CME will roll out its tokenized cash solution with Google later this year, saying that it is collaborating with “another depository bank that will help facilitate those transactions.” For a single bank to enable tokenized cash collateral across CME’s clearing members, those members would need existing accounts at that institution. That points toward a major custody bank, with BNY Mellon the most likely candidate given its near universal institutional relationships. State Street and JP Morgan are also possibilities.
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