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Uniswap Becomes First DeFi Token With Futures On CME Group

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Uniswap Becomes First DeFi Token With Futures On CME Group
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CME Group, a major US operator of regulated derivatives markets that earns revenue mainly from trading and clearing fees, has started trading futures on Uniswap’s UNI token. Standard UNI futures and Micro UNI futures went live on October 19. UNI is the first DeFi protocol token to receive standalone futures contracts on the exchange.

Uniswap is a decentralised exchange protocol which allows tokens to be swapped directly from a user’s wallet, and UNI is the native token of this platform, which enables some institutional and other users to monitor the price of the UNI token without having to hold the token itself.

Contract Sizes & Settlement Details

CME’s product specifications put the standard contract at 10,000 UNI and the Micro UNI contract at 1,000 UNI. Both contracts are cash-settled. At expiry, traders pay or receive the difference in contract value, and no UNI tokens change hands. Trading runs around the clock through CME’s cryptocurrency derivatives infrastructure.

How The Launch Came About

CME Group first announced the product on September 22, when it said it planned to introduce futures linked to Uniswap and Bitcoin Cash, subject to regulatory review. Trading in the UNI contracts began on October 19.

What The Listing Means For Traders

The new contracts could help traders hedge existing UNI holdings or take directional positions through a regulated venue. The listing does not turn UNI into a regulated security, and CME customers are not required to hold the underlying token. What it does is widen the range of crypto-linked derivatives available through established financial-market infrastructure.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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