CME Group to launch 3 metaverse reference rates

Derivatives marketplace CME Group is readying to motorboat notation rates and real-time indices for 3 metaverse crypto assets, allowing investors to way pricing information much reliably utilizing a methodology commonly utilized successful accepted finance. 

Beginning Jan. 30, CME Group and CF Benchmarks volition motorboat notation rates for Axie Infinity (AXS), Chiliz (CHZ) and Decentraland (MANA), the institution announced connected Jan. 5. The notation rates and indices are not tradeable products but alternatively tin beryllium utilized by investors to “price sector-specific portfolios, make structured products … And negociate terms hazard astir assorted Metaverse-based projects,” said Giovanni Vicioso, CME Group’s caput of cryptocurrency products.

The notation rates and real-time indices for AXS, CHZ and MANA volition beryllium calculated utilizing pricing information from astatine slightest 2 crypto exchanges, including Bitstamp, Coinbase, Kraken, itBit and LMAX Digital. The assets’ notation rates volition beryllium priced successful U.S. dollars and published regular astatine 4 p.m. London time; each real-time scale volition beryllium published each 2nd of each day.

Chiliz, the largest of the aforementioned metaverse plays, presently has a marketplace capitalization of $742.1 million, according to CoinMarketCap. Axie has a marketplace headdress of $686.5 cardinal and Decentraland is worthy astir $597.2 million.

CME Group has been progressive connected the crypto scene, launching micro-sized Bitcoin (BTC) and Ether (ETH) options past year. The derivatives marketplace besides launched euro-denominated BTC and ETH options for organization investors extracurricular the United States.

Related: An overview of the metaverse successful 2022

Metaverse tokens exploded successful popularity during the erstwhile crypto bull market, arsenic dozens of projects promised to make virtual versions of the existent world. Recognizing this imaginable opportunity, Mark Zuckerberg’s Facebook rebranded to Meta successful October 2021. Meta’s metaverse part has been hemorrhaging wealth since its inception, underscoring the difficulties of creating commercially viable products successful the caller virtual world.