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Ethereum developers propose FCR to speed up L2 and exchange confirmations

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Ethereum adds $15b in market value amid rising allocations to emerging crypto protocols

Ethereum client teams are testing an opt-in mechanism that could cut the time some layer-2 networks and exchanges wait to recognize mainnet deposits, allowing them to process transactions much faster.

Summary

  • Ethereum client teams are testing a Fast Confirmation Rule that could reduce deposit recognition times for layer 2 networks and exchanges to about 13 seconds.
  • The proposal suggests replacing block counting with validator attestations, offering faster confirmation than canonical bridges while avoiding the need for a hard fork.

Dubbed the Fast Confirmation Rule (FCR), the proposal is expected to bring confirmation times down to around 13 seconds, according to Ethereum researcher Julian Ma.

By using this approach, platforms can move away from systems that rely on canonical bridges, where transfers typically take up to 13 minutes to reach full confirmation. However, many already rely on “k-deep” confirmation rules, which offer no formal guarantees. A transaction in such models is only treated as confirmed once a predefined number of blocks have been added on top of it.

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Developers say the rule can be introduced without hard-forking, though client and API integration is still required.

Client teams are already working on implementations, with deployment expected to allow nodes to adopt the rule without network-wide coordination.

When using FCR, rather than counting blocks, the system evaluates validator attestations to determine whether a block is safe to treat as confirmed. This can solve the issue of slow bridging between Ethereum L1 and downstream platforms.

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It does this by relying on two assumptions: that validator messages propagate quickly across the network and that no single entity controls more than 25% of staked Ether. While these thresholds fall short of Ethereum’s stricter finality guarantees, they are considered sufficient for most real-world use cases.

In cases where more security is needed, the system waits longer before confirming a block, Ma explained, adding that “it’s a feature, not a bug.”

Mixed community reaction

Ethereum co-founder Vitalik Buterin said the mechanism can provide a “hard guarantee” that a transaction will not be reverted after a single slot under the right network conditions.

But other community members remained skeptical about the proposal. Some argued that the model leans heavily on trust assumptions and may face challenges under stressed network conditions.

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Crypto World

CME Group to Launch Avalanche and Sui Futures Contracts

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CME Group to Launch Avalanche and Sui Futures Contracts

CME Group is expanding its suite of cryptocurrency futures products, as more traditional finance (TradFi) entities launch regulated crypto trading products.

On Tuesday, CME Group announced plans to launch Avalanche (AVAX) and Sui (SUI) futures contracts on May 4, pending regulatory review.

Market participants will be able to trade both micro-sized and larger-sized contracts, including AVAX futures sized at 5,000 AVAX and Micro AVAX futures sized at 500 AVAX, as well as SUI futures sized at 50,000 SUI and Micro SUI futures sized at 5,000 SUI.

CME expands altcoin futures lineup

The news follows CME Group’s announcement in January of its plans to launch crypto futures contracts tied to Cardano (ADA), Chainlink (LINK) and Stellar (XLM).

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The move is the latest sign that traditional financial firms are broadening their regulated crypto product offerings.

CME Group’s continued expansion of its crypto derivatives suite reflects “growing demand for regulated, institutionally-sound products in this asset class,” said Justin Young, CEO and Co-founder of Volatility Shares.

During an earnings call in early February, CME Group CEO Terry Duffy said the exchange is mulling plans to launch its own digital token that could operate on a decentralized network.

CME Group is the largest derivatives exchange by volume, and reported a record average daily trading volume of 28.1 million contracts in 2025, according to a Jan. 7 announcement.

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Related: Crypto exchanges gain as tokenized commodity market climbs to $7.7B

CME Group prepares to launch 24/7 trading for crypto products

More TradFi entities are exploring ways to issue tokenized investment products with 24/7 trading. CME said on Feb. 19 that its cryptocurrency futures and options products will begin trading 24/7 on May 29.

Unlike traditional stocks and equities constrained to trading hours, cryptocurrencies are natively tradable 24/7 through cryptocurrency exchanges and decentralized venues.

On March 24, the New York Stock Exchange (NYSE) announced it was partnering with tokenization platform Securitize to mint blockchain-based shares of stocks and exchange-traded funds (ETFs), Cointelegraph reported. The initiative is part of its parent company, Intercontinental Exchange’s (ICE) plan for a tokenized securities venue designed for 24/7 trading and instant onchain settlement.

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Meanwhile, crypto exchanges are also venturing into tokenized TradFi products. Coinbase launched 24/7 stock perpetual futures for non-US traders on March 20, offering cash-settled exposure to major US stocks and indices, including Apple and Nvidia.

Crypto exchanges Binance and Kraken have also launched tokenized perpetual futures trading for non-US traders, along with other offshore platforms.

Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized?

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