Google Cloud has announced the creation of its own blockchain, Universal Ledger, positioned as a neutral infrastructure for global finance. This move aims to compete with similar initiatives from other large companies.
Overview of Google Universal Ledger
The Universal Ledger from Google is designed to support financial institutions and is compatible with Python-based smart contracts, simplifying the development process. The platform is positioned as neutral, allowing various institutions to use it without fears of empowering their competitors.
Blockchain Strategy and Features
Google's approach is different from other major players like Stripe and Circle, which create their own closed ecosystems. Google focuses on programmability and accessibility for financial engineers, reflecting its experience in cloud computing. Additionally, the company has completed initial integration testing with CME Group, with broader trials scheduled for this year.
CME Group Partnership and Its Significance
The partnership with CME Group highlights Google's institutional focus for its blockchain. The CME chairman notes that this collaboration could lead to significant improvements in collateral management and settlement processes, which would be beneficial in the context of continuous trading in financial markets.
Google's Universal Ledger represents a strategic investment in creating a neutral blockchain infrastructure for financial institutions. With testing now underway with market participants, expectations for the platform are growing, and its real-world effectiveness will be tested in traditional finance.
