Membrane Labs, a pioneer in digital asset prime infrastructure, will now offer market participants the ability to swap CME Group Bitcoin futures (BTC) and Ether futures (ETH) positions for an equivalent spot position through a seamless Exchange for Physical (EFP) workflow.
This solution enables institutional participants to pair Bitcoin and Ether futures positions cleared through CME Group with spot crypto transactions handled via Membrane’s CustodyLink™ settlement network, efficiently allowing the transfer of positions across these two distinct markets.
“Membrane is proud to collaborate with CME Group to bring a seamless EFP solution to institutional crypto,” said Carson Cook, CEO of Membrane Labs. “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.”
“Client demand for regulated access to crypto continues to evolve,” said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. “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.”
What It Means for the Marketplace
Seamless Basis Management: Institutions can execute matched futures and spot trades in a single EFP transaction, locking in both the futures price and cash price simultaneously. This eliminates execution risk, minimizes slippage, and guarantees a known basis without having to separately trade futures and OTC spot.
Streamlined End-to-End Settlement: 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—all while maintaining CME’s on-exchange margin and clearing services.
Capital-Efficient Crypto Exposure: The EFP workflow enables firms to obtain spot BTC and ETH exposure without taking on principal risk on a crypto exchange. Clients deploy capital more efficiently, hedges are collateralized via CME Group, and custody obligations are 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 FCMs and custodians. Firms interested in implementing this structure are encouraged to contact Membrane Labs at Sales@membranelabs.com for onboarding and support.
