Search engine and cloud service giant Google has invested the sum of $1 billion in taking up a non-voting equity stake in CME Group, the worlds largest derivatives marketplace.
As the trading platform unveils, a decade-long partnership deal has been inked with the tech giant as it looks to migrate its operations to the cloud.
The embrace of Googles tech capabilities will help CME Group bring additional value into its ever-expanding derivatives marketplace. Starting from 2022, CME Group said it will start migrating its data onto the Google Cloud while also moving its clearing service and the entirety of its markets to the cloud.
“Through this long-term partnership with Google Cloud, CME Group will transform derivatives markets through technology, expanding access and creating efficiencies for all market participants,” said Terry Duffy, Chairman, and Chief Executive Officer, CME Group.
“To ensure a smooth transition, we will work closely with clients to implement a phased approach. This partnership will enable CME Group to bring new products and services to market faster – all in a flexible and scalable environment that will create a wide range of opportunities for the marketplace.”
The partnership between both entities is not uncommon in the digital asset trading ecosystem and the broader blockchain industry. Back in October 2020, Google Cloud revealed it would join the EOS community and ventured into becoming a block producer candidate for Block. ones EOS public blockchain network as reported by Blockchain.news at the time.
The integration of cloud infrastructure by cryptocurrency exchanges is also a growing trend by the day. Crypto.com has also tapped Amazon Web Services (AWS) as its preferred cloud provider to provide enhanced scalability and security for its millions of users.
While many crypto proponents believe blockchain and its accompanying innovations can directly threaten big tech, crypto-linked firms are notably exploring avenues to co-exist and return value as more growth initiatives are pursued across the board.