Financial news

Google and Coinbase have forged a new partnership that will see Google accept cryptocurrencies for some of its cloud computing customers and partners.

Under the collaboration, Coinbase will use Google Cloud’s compute platform to process blockchain data at scale, and enhance the global reach of its crypto services by leveraging Google’s premium fiber-optic network.

Coinbase will also build its global data platform on Google Cloud’s secure infrastructure and utilise its data and analytics technologies to provide Coinbase customers with machine learning-driven crypto insights.

In addition, Google Cloud will let some customers pay for its cloud services via select cryptocurrencies. Web3 developers can also access Google BigQuery crypto public datasets, which will be powered by Coinbase Cloud Nodes across blockchains. The integration will allow developers to instantly and reliably operate Web3-based systems without the need for expensive and complex infrastructure.

Coinbase says it is ‘excited’ that Google Cloud has selected Coinbase to help bring Web3 to a new set of users and provide powerful solutions to developers.

Brian Armstrong, CEO of Coinbase, said: “With more than 100 million verified users and 14,500 institutional clients, Coinbase has spent more than a decade building industry-leading products on top of blockchain technology. We could not ask for a better partner to help execute our vision of building a trusted bridge into the Web3 ecosystem.”

While Google hailed the partnership for helping developers get one step closer to ‘building in Web3 faster and easier’.

Thomas Kurian, CEO of Google Cloud. “We’re proud Coinbase has chosen Google Cloud as its strategic cloud partner, and we’re ready to serve the thriving global Web3 customer and partner ecosystem. Our focus is making it frictionless for all customers to take advantage of our scalability, reliability, security, and data services, so they can focus on innovation in the Web3 space.”

Google will also use Coinbase Prime for institutional crypto services, like secure custody and reporting.

Industry response 

Times have changed. The world’s attitude towards cryptocurrencies has evolved massively over the last couple of years: companies that were previously anti-crypto are now dabbling in it: case and point, Google’s latest partnership.

In 2018, Google stated that it had updated its financial services policy to disallow ads for cryptocurrencies and related content. This included the likes of initial coin offerings, crypto exchanges, cryptocurrency wallets and cryptocurrency trading advice. Why? Because the companies running ads often turned out to be fraudulent. Eventually the US and Japan were able to run ads from regulated companies, but the change was made in the name of public safety.

The fact Google has now partnered with a crypto exchange, an entity they had previously banned all promotion of, shows the evolving attitude towards cryptocurrencies across the globe. We reached out to the fintech industry to find out what impact this partnership has had on it.

Kevin Greene, CEO and Chairman of Tassat, the blockchain payments network for banks, said: “This partnership is yet another example of the power of blockchain technology to transform payments. At the Digital Interbank Network, we say crypto is just one per cent of the potential use cases for banks and businesses to harness blockchain, and the news from Google exemplifies this sea change towards mainstream adoption.

“For the fintech industry as a whole, we’ll continue to see a shift towards blockchain-based payments offerings, particularly solutions that utilise private permissioned blockchains, which make payments faster, easier and more secure,” he concluded.

Billy Huang, CEO and co-founder of Insomnia Labs, a metaverse advertising and technology company said: “Google accepting Bitcoin through its partnership with Coinbase is a tremendous win for the Web3 community. This move provides a much-needed validation for cryptocurrency enthusiasts who will be able to make crypto transactions processed by one of the most popular and well-respected companies in the world.

“Although it is for Google Cloud Services, a more backend-driven service, the announcement is still a sign that the tech giant is supportive of cryptocurrencies and blockchain technology. It bodes well for the future of the industry as more companies like Starbucks and Robinhood start embracing this revolutionary technology, which will open doors to new markets for crypto companies around the world.”