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Membrane Labs, a digital asset prime infrastructure provider, has launched an Exchange for Physical (EFP) workflow enabling market participants to swap CME Group Bitcoin and Ether futures positions for equivalent spot positions.
The solution allows institutional participants to pair Bitcoin and Ether futures positions cleared through CME Group with spot crypto transactions handled via Membrane's CustodyLink™ settlement network, facilitating the transfer of positions across the two markets.
Carson Cook, Chief Executive Officer of Membrane Labs
Carson Cook, Chief Executive Officer of Membrane Labs, said:
"Membrane is proud to collaborate with CME Group to bring a seamless EFP solution to institutional crypto. This workflow allows clients to manage basis trades, facilitate delivery, and access liquidity across multiple custodians with the same post-trade integrity they expect from traditional asset classes."
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, added:
"Client demand for regulated access to crypto continues to evolve. By relying on CME Group's trusted infrastructure and market-leading liquidity, Membrane will help empower clients seeking capital-efficient exposure to today's leading crypto markets."
The EFP workflow offers institutions the ability to execute matched futures and spot trades in a single transaction, locking in both the futures price and cash price simultaneously. This eliminates execution risk, minimises slippage, and guarantees a known basis without requiring separate futures and over-the-counter spot trades.
By routing the physical leg through Membrane's CustodyLink™ network, clients benefit from automated, custodian-agnostic delivery. This removes manual reconciliation steps, accelerates funding, and ensures on-chain settlement integrity, whilst maintaining CME's on-exchange margin and clearing services.
The workflow enables firms to obtain spot Bitcoin and Ether exposure without taking on principal risk on a crypto exchange. Clients deploy capital more efficiently, with hedges collateralised via CME Group and custody obligations fulfilled off-exchange, freeing up balance sheets and helping to reduce funding costs.
The EFP workflow will be available to CME Group clients using participating futures commission merchants and custodians. Firms interested in implementing this structure can contact Membrane Labs at [email protected] for onboarding and support.
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