Reference Rates
Kaiko Reference Rates are benchmark prices for digital assets, designed to meet the Benchmark Regulation (BMR) compliance standards.
Publisher review
Kaiko Reference Rates are benchmark prices for digital assets, designed to meet the Benchmark Regulation (BMR) compliance standards. They serve institutional clients—such as asset managers, derivatives exchanges, and compliance teams—who need a defensible, auditable price for financial products, risk management, and regulatory reporting. The rates are used as settlement prices for Cboe Digital's futures contracts, and Kaiko has expanded the product to cover equities and ETFs across the U.S., South Korea, and Hong Kong, enabling 24/7 derivatives exposure. The rates are available both off-chain and on-chain via Kaiko's Data On-Ramp oracle, supporting the move of capital markets onto blockchain networks.
The methodology combines a volume-weighted median with a time-weighted average price (TWAP), applied to data from high-governance venues. This aggregation approach mitigates market abuse risks by filtering out low-quality or suspicious trades. The rates are reviewed quarterly to reflect current market conditions, and the underlying data sources are selected based on governance criteria. Kaiko emphasizes that its process creates quantitative, clean prices through expert governance, but public documentation does not specify the exact number of exchanges used or the depth of order book data (Level 1 and Level 2 snapshots are mentioned, but not per-order Level 3 data).
In the market data space, Kaiko competes with providers like CoinAPI, which offers a broader exchange count (380+ versus Kaiko's lower count) and more granular data, including Level 3 order book feeds and replayable historical archives. CoinAPI also provides transparent tiered pricing and a 99.9% uptime SLA, while Kaiko's pricing is less publicly disclosed and typically requires enterprise/custom quotes. Kaiko differentiates by focusing on packaged analytics and regulatory compliance, rather than raw infrastructure-grade data delivery. CoinAPI's indices are built on a unified infrastructure with consistent symbology, whereas Kaiko's Reference Rates are positioned as a benchmark product for derivatives pricing and compliance.
The honest trade-off with Kaiko Reference Rates is that while they offer BMR compliance and expert governance, they lack the data depth and transparency of some competitors. Users get a curated, defensible price but sacrifice access to tick-level order book data and the ability to customize aggregation. Pricing is opaque, making it difficult for smaller firms to evaluate cost. Additionally, Kaiko does not publicly specify uptime SLAs, which may be a concern for latency-sensitive trading operations. The expansion into equities and ETFs is promising, but the product's core strength remains in digital assets, and its on-chain availability via Data On-Ramp is still emerging.
How it works
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BMR-compliant benchmarks
Reference Rates meet EU Benchmark Regulation standards, making them suitable for regulated financial products and compliance reporting.
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Volume-weighted median with TWAP
Aggregation uses a volume-weighted median combined with a time-weighted average price to produce a single defensible rate.
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High-governance venue selection
Data is sourced from exchanges with strong governance, reducing the risk of market manipulation and low-quality trades.
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Quarterly methodology review
The rate calculation methodology is reassessed every three months to stay aligned with current market conditions.
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Multi-asset coverage expansion
Rates now cover equities and ETFs in the U.S., South Korea, and Hong Kong, in addition to digital assets.
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On-chain availability via Data On-Ramp
Rates can be delivered on-chain through Kaiko's oracle, enabling smart contract use cases for derivatives and predictions.
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Cboe Digital futures settlement
Reference Rates are used as the official settlement price for Cboe Digital's cryptocurrency futures contracts.
Strengths and trade-offs
Strengths
- Kaiko Reference Rates are BMR-compliant, providing a regulatory-safe benchmark for derivatives pricing and compliance in the EU.
- The volume-weighted median plus TWAP methodology reduces the impact of outlier trades, producing a more stable reference price.
- Quarterly reviews ensure the methodology adapts to changing market structure, such as shifts in exchange liquidity.
- Expansion into equities and ETFs across three major markets (U.S., South Korea, Hong Kong) broadens the product's utility beyond crypto.
Trade-offs
- Pricing is not publicly disclosed; enterprise/custom quotes are typical, making it hard for small firms to budget.
- Public documentation does not specify uptime SLAs, unlike competitors who offer 99.9% guarantees.
- Data depth is limited to Level 1 and Level 2 snapshots; per-order Level 3 data is not highlighted, reducing granularity for advanced analysis.
- The exchange count appears lower than competitors like CoinAPI (380+), potentially limiting coverage breadth and diversification.
Pricing context
Pricing is not publicly disclosed; enterprise/custom quotes are typical, with no published tiers or fee schedules.
Getting started with Reference Rates
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Request enterprise access
Contact Kaiko's sales team through their website to request a custom quote and access credentials for the Reference Rates product. Provide your firm's details and intended use case, such as derivatives pricing or compliance reporting.
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Connect to Kaiko's API
Use the API key provided by Kaiko to establish a connection to their data feed. Configure your application to authenticate via HTTPS requests, following the documentation for endpoint URLs and rate limits.
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Select benchmark assets
Choose the digital assets, equities, or ETFs you need reference rates for from Kaiko's coverage list. Specify the frequency (e.g., daily or intraday) and whether you require on-chain delivery via the Data On-Ramp oracle.
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Integrate rates into workflow
Load the reference rates into your pricing engine, risk management system, or smart contract. For derivatives settlement, map the rates to your contract terms, ensuring alignment with the volume-weighted median and TWAP methodology.
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Verify quarterly methodology updates
Monitor Kaiko's quarterly methodology review announcements to ensure your systems reflect any changes in venue selection or calculation parameters. Adjust your integration if needed to maintain compliance with BMR standards.
Frequently Asked Questions
What are Kaiko Reference Rates used for?
Kaiko Reference Rates are benchmark prices for digital assets used by institutional clients like asset managers and derivatives exchanges. They serve as settlement prices for Cboe Digital's futures contracts and support regulatory reporting, risk management, and financial product pricing.
How does Kaiko calculate its Reference Rates?
Kaiko combines a volume-weighted median with a time-weighted average price, or TWAP. This methodology filters out low-quality trades from high-governance venues, producing a clean, defensible rate. The approach is reviewed quarterly to stay aligned with current market conditions.
Are Kaiko Reference Rates compliant with regulations?
Yes, Kaiko Reference Rates meet the EU Benchmark Regulation, or BMR, standards. This makes them suitable for regulated financial products and compliance reporting, giving institutional clients a defensible price for derivatives and risk management.
How do Kaiko Reference Rates compare to CoinAPI?
CoinAPI offers broader exchange coverage with over 380 venues and more granular Level 3 data, while Kaiko focuses on BMR compliance and packaged analytics. Kaiko's pricing is less transparent, typically requiring custom quotes, unlike CoinAPI's published tiers and 99.9% uptime SLA.
What data depth do Kaiko Reference Rates provide?
Kaiko Reference Rates use Level 1 and Level 2 order book snapshots but do not include per-order Level 3 data. This limits granularity for advanced analysis, though the curated methodology aims to reduce market abuse risks and produce stable benchmark prices.
Can Kaiko Reference Rates be used on-chain?
Yes, Kaiko Reference Rates are available on-chain through Kaiko's Data On-Ramp oracle. This enables smart contract use cases for derivatives and predictions, supporting the move of capital markets onto blockchain networks while maintaining BMR compliance.
Alternatives
How Reference Rates compares
Direct head-to-head against 2 competitors. Picked by 7wData.
Reference Rates
- Pricing
- Pricing is not publicly disclosed; enterprise/custom quotes are typical, with no published tiers or fee schedules.
- Target
- Kaiko Reference Rates are benchmark prices for digital assets, designed to meet the Benchmark Regulation (BMR) compliance standards.
- Strength
- Kaiko Reference Rates are BMR-compliant, providing a regulatory-safe benchmark for derivatives pricing and compliance in the EU.
- Watch for
- Pricing is not publicly disclosed; enterprise/custom quotes are typical, making it hard for small firms to budget.
Bankrate
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- Free access to rate data
- Target
- Consumers seeking mortgage rates
- Deployment
- Web
- Strength
- Comprehensive rate comparisons
- Watch for
- Limited to mortgage rates
Valenz Health
- Pricing
- Custom/Contact sales
- Target
- Self-funded employers
- Deployment
- Web
- Strength
- Market-sensitive pricing models
- Watch for
- Complex setup for hybrid models
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Sources
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