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Google Invests $1 Billion in Bitcoin Futures Platform CME Group

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Thu, 11/04/2021 - 13:59
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Yuri Molchan
Google Cloud giant invests $1 billion in CME – a futures exchange that, aside from other futures, trades Bitcoin and ETH contracts
Google Invests $1 Billion in Bitcoin Futures Platform CME Group
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Google has given a whopping $1 billion to CME Group—the first platform that launched Bitcoin futures together with CBOE in December 2017, according to The Wall Street Journal.

Along with the investment, a condition was that CME would shift its core trading system to the Google Cloud.

Google gets a prize client: CME

CME works with markets that see trillions of USD circulating in trades every single day. The partnership of the companies will make it easier for CME to land new customers quickly, perform operations seamlessly and build new trading tools based on Google tech. The latter includes AI-based software that monitors market risks.

CME Group's market capitalization value totals almost $80 billion, and this platform is the most valuable exchange operator. This status was awarded to CME recently after it was lost by Hong Kong Exchanges & Clearing Ltd. CME trades in multiple markets, including crude oil, gold and Bitcoin and ETH futures.

Google Cloud is the fourth-biggest provider of cloud services. In 2020, it received 6.1% of revenues in the cloud infrastructure around the globe, as per data from Gartner Inc. The largest player in this market is Amazon, with a 40% market share in 2020, followed by Microsoft and Alibaba Group.

Google invests $1 billion in CME stocks

The aforementioned $1 billion was invested by Google Cloud in CME's nonvoting convertible preferred stock. According to Google Cloud CEO Thomas Kurian, this stands for Google's intention to support not a single company but the transformation of the whole nascent financial system on the planet.

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When CME will move to Google Cloud

The process of CME shifting its infrastructure to Google Cloud will take place in 2022. The core trading systems will migrate first, then CME's data and clearing services will follow suit.

In the end, all CME markets will be shifted to Google Cloud. The chief of CME, Terrence Duffy, has called the deal with the cloud giant "a marriage made in heaven."

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.