CME Group will launch three metaverse crypto assets reference rates and real time indexes. This will enable investors to track pricing data with greater reliability using a standard methodology used in traditional finance.
Beginning Jan. 30, CME Group and CF Benchmarks will launch reference rates for Axie Infinity Shards (AXS), Chiliz (CHZ) and Decentraland’s MANA (MANA), the company announced January 5, 2005 The reference rates and indexes are not tradeable products but instead can be used by investors to “price sector-specific portfolios, develop structured products […] and manage price risk around various Metaverse-based projects,” said Giovanni Vicioso, CME Group’s head of cryptocurrency products.
AXS, CHZ, and MANA’s reference rates and real time indexes will be calculated using pricing information from at least two cryptocurrency exchanges including Bitstamp and Coinbase as well as Kraken, Kraken and LMAX Digital. The assets’ reference rates will be priced in U.S. dollars and published daily at 4:00 pm GMT. Each index will be published every minute of every day.
According to CoinMarketCap Chiliz is currently the largest of these metaverse play, with a market capitalization at $742.1 million. AXS’ market cap is $686.5 Million, while MANA’s value is approximately $597.2 Million.
CME Group is active in the crypto market, having launched micro-sized Bitcoin (BTC), and Ether (ETH), options last year. The derivatives marketplace launched euro-denominated BTC as well as ETH options for institutional investors from outside the United States.
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Metaverse tokens were very popular during the crypto bull market. Hundreds of projects had promised to make virtual versions of real worlds. Recognizing this potential opportunity, Mark Zuckerberg’s Facebook rebranded to Meta in October 2021. Meta’s metaverse division has been hemorrhaging money since its inception, underscoring the difficulties of creating commercially viable products in the new virtual world.