CME Group enters the token issuance game, will Wall Street giants also target the stablecoin market?

Original Title: “CME to Issue Its Own Token? Wall Street Giants’ ‘New Encirclement’”

Original Author: Seed.eth, Bitpush News

In the power game of Wall Street, the giants are never absent; they are just waiting for the right moment to harvest the entire field.

This morning, Terry Duffy, CEO of the world’s largest derivatives trading platform CME Group, made a statement during the Q4 earnings call that stirred the entire market.

Duffy revealed that CME is actively exploring the issuance of its own digital token: “CME Coin.”

This is not just a technical experiment; under the narrative of “tokenizing everything,” CME’s move appears more like a deep “encirclement” by traditional finance (TradFi) against native crypto infrastructure.

1. The Mystery of Positioning: Chips or Ammunition?

Although named “Coin,” CME Coin is not the same as the cryptocurrencies familiar in the crypto world. From Duffy’s brief response, the following information can be inferred:

• The token is intended to operate on a decentralized network.

• CME distinguishes it from the “Tokenized Cash” project (in collaboration with Google Cloud) currently under development, stating these are two different initiatives.

The CEO emphasized that, as a “Systemically Important Financial Institution (SIFI),” the tokens issued by CME are far more secure than similar products currently on the market. (Editor’s note: SIFI usually refers to large banks; SIFMU refers to “financial arteries” like CME that provide clearing and settlement services. CME’s SIFMU status grants it access to Federal Reserve accounts.)

It’s clear that CME Coin’s underlying logic leans toward digital upgrading of financial infrastructure, with core functions likely including:

· Settlement Tool: Similar to an internal high-level “chip,” used for 24/7 real-time settlement between institutions.

· Tokenized Collateral: Converting margin into liquid tokens, allowing previously locked funds to “come alive” on the chain.

2. Why Now? CME’s Triple Strategy

CME’s entry at this time is not impulsive but based on a triple strategy aligned with its 2026 digitalization plan:

Addressing “Weekend Liquidity Shortage”

CME plans to fully launch 24/7 trading of crypto futures by 2026. Traditional bank wire systems (FedWire) do not process transactions on weekends. If Bitcoin crashes on a Saturday night, institutions cannot transfer funds to top up margins, exponentially increasing the risk of liquidation. CME Coin, based on blockchain and operating around the clock, is a “quick remedy” for margin systems.

“Recapturing” the “Interest Profits”

Currently, institutions participating in crypto markets usually hold USDT or USDC. This means hundreds of billions of dollars in cash are deposited with companies like Tether and Circle, generating hundreds of millions in interest that these companies alone enjoy. The emergence of CME Coin signifies CME’s attempt to keep this substantial cash flow on its own balance sheet.

Building a “Compliance Moat”

With BlackRock issuing the BUIDL fund and JPMorgan deepening its JPM Coin efforts, the giants have reached a consensus: future financial competition will no longer be about market share but about “collateral efficiency.”

CME’s CEO was very straightforward: compared to tokens issued by third- and fourth-tier banks or private companies, they trust more those issued by “systemically important” financial giants like JPMorgan (SIFI). This sounds like risk control, but in reality, it’s setting standards. By raising the bar for collateral “origin,” CME is effectively excluding existing “private” stablecoins, creating a higher threshold and a safer “membership-based” playground for traditional finance. How to play in the future will be according to their rules.

Therefore, CME Coin is more like a “door-opener” for traditional financial giants trying to regain influence over the crypto world. The show has just begun.

3. Eroding Existing Stablecoins?

For a long time, Tether (USDT) and Circle (USDC) have dominated the stablecoin market with their first-mover advantage and liquidity inertia. But CME’s entry is dismantling their moat from two dimensions:

It is an asset, and also a “Liquid Clearing Right”

USDT or USDC are mainly “fund transfer tools,” while CME handles derivatives positions worth trillions of dollars across rates, commodities, equities, and more.

· Core Position: Once CME Coin becomes an officially recognized collateral asset, it will directly enter the “heart” of the global financial system—serving as the foundation for price discovery and stability.

· Mandatory Holding: CME Coin captures “clearing flow.” As banks conduct business with CME, they must become “mandatory holders” of this token to meet real-time margin requirements. With demand surging, this institutional necessity is beyond what any native crypto can match. According to the January financial report, CME’s daily crypto trading volume reached $12 billion in 2025, with micro Bitcoin (MBT) and micro Ethereum (MET) futures contracts performing particularly strongly.

Collateral as Sovereign: Reshaping the Market’s “Digital Throat”

In modern finance, collateral is the real choke point. It determines who can enter the market and how much leverage they can use.

· Enhanced Intermediary: Contrary to the blockchain advocacy of “decentralization,” CME is actually strengthening its monopoly as a top-tier intermediary with a digital shell.

· Closed Fortress: Unlike open-access DeFi, CME Coin is very likely a closed-loop game exclusive to institutions. It lacks open governance and only has legally protected clearing rights.

The “Siphoning” of Yields: Tokens launched by Wall Street giants often come with “interest-earning” attributes or fee deduction functions. Facing risk-free US Treasury yields above 5%, institutions have no reason to hold long-term, non-dividend-paying traditional stablecoins.

Summary

Looking at the bigger picture, CME’s strategy is not unique. Recently, JPMorgan launched tokenized deposit services on Coinbase’s Layer 2 blockchain, Base, using its JPM Coin (JPMD). Unlike traditional transfers that take days, JPMD achieves instant settlement, quietly changing how large financial institutions transfer positions. These paths are similar: embracing blockchain efficiency while firmly maintaining traditional power structures.

This is not the victory of decentralized finance many crypto natives hope for but more like a “digital upgrade” of traditional financial order. Giants are skillfully transforming their past “clearing monopoly” into future “digital passes.”

Once their rule-making is complete, the battlefield will be redrawn. Not only current private stablecoins but also tokens issued by many small and medium-sized banks may lose eligibility under this new “compliance” standard.

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