CME’s new reference rates and real-time indexes will include Axie Infinity, Chiliz, and Decentraland.
CME Group, a derivatives marketplace, plans to launch reference rates and real-time indexes for three metaverse crypto assets, allowing investors to track pricing data more reliably using a methodology common in traditional finance.
CME Group and CF Benchmarks will launch reference rates for Axie Infinity Shards, Chiliz (CHZ), and Decentraland’s MANA on January 30, the company announced on January 5. Investors can use the reference rates and indexes to “price sector-specific portfolios, develop structured products […] and manage price risk around various Metaverse-based projects,” according to Giovanni Vicioso, CME Group’s head of cryptocurrency products.
The AXS, CHZ, and MANA reference rates and real-time indexes will be calculated using pricing data from at least two crypto exchanges, including Bitstamp, Coinbase, Kraken, itBit, and LMAX Digital. The reference rates for the assets will be priced in US dollars and published daily at 4:00 p.m. GMT. Every second of every day, each real-time index will be published.
According to CoinMarketCap, Chiliz, the largest of the aforementioned metaverse plays, has a market capitalization of $742.1 million. AXS has a market capitalization of $686.5 million, while MANA is worth approximately $597.2 million.
CME Group has been active in the cryptocurrency market, having launched micro-sized Bitcoin and Ether options last year. For institutional investors outside the United States, the derivatives marketplace has also launched euro-denominated BTC and ETH options.
During the previous crypto bull market, dozens of projects promised to create virtual versions of the real world, and metaverse tokens exploded in popularity. Recognizing this potential opportunity, Facebook’s Mark Zuckerberg rebranded to Meta in October 2021. Since its inception, Meta’s metaverse division has been losing money, highlighting the difficulties of developing commercially viable products in the new virtual world.