CME Group is exploring the possibility of integrating Solana (SOL) and Cardano (ADA) into its futures market

Solana and Cardano soon on the CME?

the CME-Groupthe world’s largest futures exchange company, could integrate Solana (SOL) and Cardano (ADA) to his cryptocurrency book.

Anyway, that’s what he said. Payal Shahdirector of the cryptocurrency division at the CME Group, during an interview with Digital Asset Summit which took place last month.

In a discussion with a wide panel of cryptocurrency industry stakeholders, she said that the CME Group “ was getting a number of customer requests for anything outside of the main 2 [Bitcoin (BTC) et Ethereum (ETH)]including Solana and Cardano. »

However, she clarified that the CME Group had to solve 2 major problems before we can enter these altcoins on the futures market.

First of all, there is the concern for regulations, especially for a market place of this magnitude. Effectively, the regulations regarding altcoins in the United States are still very vague“ we need to know where to send the paperwork,” Ms. Shah said of it.

Then, it will be necessary for the CME Group to acquire indexes in order to have the most reliable altcoin price continuously. As an indication, the price of Ether and Bitcoin, the cryptocurrencies already offered on the futures market, is calculated from 5 different exchanges.

? Find our guide to buy Bitcoin (BTC)

The impact of cryptocurrencies on the futures market

Following the implementation of bitcoin futures (BTC) at the end of 2017 and given its success, the CME Group also decided to integrate Ether futures contracts in February 2021. Futures contracts allow investors to speculate on the evolution of an asset, unlike the spot market which is subject to the market value in real time.

A few months later, in May 2021, the CME Group added futures contracts for micro Bitcoin, before adding micro Ether in December, allowing traders to expose themselves in a more flexible and less risky way, since this type of contract represents only one tenth of the real value of the base asset. Finally, last week, the CME Group added Micro Bitcoin and Micro Ether option contracts to its notebook.

For Payal Shah, the addition of cryptocurrencies to this market is a real added value :

“In just a few years – just over 4 years – since we launched the first Bitcoin futures contract with a 5x multiplier, we have seen the number of daily contracts increase from 1,000 to over 10,000 today. today. It’s amazing growth. »

At the time of writing, the CME Group has registered more than 5 million contracts in micro Bitcoin and more than 1.2 million futures contracts in Ether.

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Source: CryptoCompare