Rich Widmann, who is in charge of Google Cloud's Web3 strategy, dropped a bomb on LinkedIn by sharing juicy details about the company's layer-1 blockchain, the Google Cloud Universal Ledger (GCUL). Widmann said it was the result of "years of R&D," and the goal is to make it a neutral, Python-friendly infrastructure layer that works great for banks and other financial institutions. To put it another way, this isn't Google's first time.
A Neutral Blockchain for Big Banks
Widmann took a shot at the competition by saying,
"Tether won’t use Circle’s blockchain, and Adyen probably won’t use Stripe’s blockchain."
In short, GCUL wants to be the "Switzerland of blockchains," a neutral platform that can handle everything that financial players need. If you're not playing the neutral card, how else can you get people's attention in the financial world?
Stripe and Circle vs. Google
Stripe and Circle aren't just sitting around. Both companies are also getting into layer-1 blockchains. Circle just released Arc, a network for stablecoin finance. Stripe, on the other hand, is keeping things quiet about a project called Tempo that it is working on with the crypto company Paradigm. Widmann says that Google's Universal Ledger is aiming for the stars. It will be a "planet-scale" blockchain that can handle billions of users with bank-level security. Not a big deal, right?
CME Group Joins in for Testing
And this is where it gets interesting: Google Cloud isn't just talking the talk. They are already testing GCUL with the Chicago Mercantile Exchange (CME). The pilot, which was announced in March, is all about making payments and settling tokenized assets. CME is a big player with $1.7 billion in revenue in the second quarter and 30.2 million contracts every day. Google is going after the heart of global finance. I think this partnership could change things up.
Google's announcement is part of a larger trend in which tech and fintech companies are making their own blockchains. For example, Plasma, which is backed by Tether investors, plans to build a blockchain for USDT that focuses on settlements after raising $24 million. Robinhood is also bringing tokenized US stocks and ETFs to Europe and plans to move to its own layer-2 blockchain. It looks like everyone is getting involved.
Google has been interested in blockchain since 2018, but this move shows that they are really getting into it. Will GCUL be a success? I'm keeping an eye on this one.
Tanya Petrusenko
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
