CME Group Floats Solana Futures With FalconX Partnership

Leading digital asset prime broker FalconX has announced executing the first-ever block trade of CME Group’s newly launched Solana (SOL) futures product with StoneX. This collaboration with the global financial services firm marks a significant milestone for FalconX. It equally demonstrates its continued leadership in institutional cryptocurrency derivatives trading.

Meeting Institutional Investors’ Crypto Demands 

There is an increasing demand and adoption of cryptocurrencies and crypto-based services among institutional clients. The CME Group’s launch of SOL futures directly responds to this situation, considering how it provides these investors with regulated access to digital assets beyond Bitcoin (BTC) and Ethereum (ETH). 

Josh Barkhordar, the Head of US Sales at FalconX, noted that this move allows institutional investors to manage risk and price exposure on a regulated venue. It is also a major win for the Solana ecosystem. 

“This inaugural trade reinforces our commitment to offering a world-class derivatives franchise with exceptional speed-to-market capabilities that institutional clients require,” Barkhordar explained. 

Institutional investors are exposed to sophisticated hedging strategies and also get to expand their financial portfolios. 

CME Group Launch Solana Futures

When CME Group launched SOL futures in February, it was in a bid to give investors a way to trade Solana’s price movements without directly holding the asset. It is worth noting that these futures are settled in cash and are usually presented in two sizes. The standard contracts are equivalent to 500 SOL, while the micro contracts are only 25 SOL.

The CME CF Solana-Dollar Reference serves as the backing for these prices. It presents a daily reference rate of the U.S. dollar price of Solana, usually calculated at 4:00 p.m. London time. 

Now, StoneX and StoneX Digital have joined CME Group to facilitate its efforts to help institutions gain access to cryptocurrencies through a regulated and compliant suite of listed derivatives. 

Crypto Investment Options For Institutional Clients 

Still part of the efforts towards meeting institutional crypto demands, Deutsche Börse, through its subsidiary ClearStream, has hinted at plans to launch a new custody service for institutional investors. It will initially support BTC and ETH and gradually move to more digital assets in the future. 

This offering, which is scheduled to launch in April, will give institutional clients access to custody and settlement for digital assets.