A leading provider of cryptocurrency, CF Benchmarks, and CME Group, a leading derivatives marketplace, recently announced plans to launch two new Asia Pacific-specific reference rates for bitcoin and ether on Sept. 11.

The CME CF Bitcoin Reference Rate APAC (BRRAP) and CME CF Ether-Dollar Reference Rate APAC (ETHUSD_AP), will provide a once-a-day reference rate for the United States dollar price of the two digital assets, according to an Aug. 16 press release.

"These new reference rates are designed to meet the ever-evolving needs of global participants in the growing digital asset space," said Giovanni Vicioso, CME Group's global head of cryptocurrency. “Year-to-date, 37% of total crypto volume at CME Group has been traded during non-U.S. hours, with 11% of trades coming from the APAC region. As we continue to see more institutional clients use our bitcoin and ether futures products in active portfolios or structured products like ETFs, these APAC reference rates will allow market participants to more accurately and precisely hedge cryptocurrency price risk with timing more closely aligned to their portfolios."

These “non-tradable reference rates” will complement the existing CME CF Bitcoin Reference Rate (BRR) and CME CF-Ether Dollar Reference Rate (ETHUSD_RR), as well as the recently introduced CME CF Bitcoin Reference Rate New York (BRRNY) and CME CF Ether-Dollar Reference Rate New York (ETHUSD_NY), the release stated. The BRR and ETHUSD_RR “will continue to serve as the benchmark rates for settlement of all CME Group bitcoin futures, micro bitcoin futures and ether futures and micro ether futures contracts.”

Sui Chung, CEO of CF Benchmarks, shared his excitement about the collaboration.

"Crypto adoption continues apace and CF Benchmarks is delighted to facilitate financial institutions in providing regulated financial products to Asian markets with the introduction of APAC variants to our market-defining Bitcoin Reference Rate and Ether-Dollar Reference Rate," Chung said. "As variants, these benchmarks will be calculated and administered to the same exacting standards enjoyed by their existing London and New York counterparts, which have done so much to build investor and institutional confidence in crypto financial products."