A pilot initiative has been launched in collaboration with Google Cloud to investigate the tokenization of assets and streamline wholesale payment procedures using blockchain technology, as detailed in a statement from March 25.
The two entities have successfully completed the initial phase of integration and testing for the Google Cloud Universal Ledger (GCUL), a permissioned blockchain framework specifically designed for institutional finance.
This pilot program will assess how GCUL can enhance the efficiency and security of digital transfers across various applications, such as collateral management, margining, settlement, and fee payments.
The Chairman and CEO expressed that this initiative aligns with recent federal requests for clarity in financial market legislation and reflects a broader objective to modernize core infrastructure.
He added:
“As the President and the new Administration have urged Congress to establish significant legislation for sensible market structure, we are excited to team up with Google Cloud to create innovative solutions for the cost-effective and digital transfer of value.”
The announcement also pointed out that the Universal Ledger architecture could support continuous financial operations, catering to the increasing demand as digital markets evolve beyond traditional settlement times.
Testing with market participants will begin later this year, with a target to roll out tokenization-related services in 2026. Specific details about the tokens or targeted assets involved in the pilot have not been disclosed.
Institutional Solution
The Universal Ledger platform from Google Cloud is a programmable distributed ledger featuring private and permissioned access designed to seamlessly integrate with the workflows of traditional financial institutions.
It is suggested that this ledger simplifies account and asset management while facilitating programmable transfers on a secure, enterprise-grade network between participants.
The General Manager for Financial Services at Google Cloud framed the collaboration as part of a larger mission to provide infrastructure that mitigates operational complexities in capital markets.
He further remarked:
“Working with CME Group to innovate using GCUL exemplifies our commitment, showcasing how Google Cloud aids partners in transforming their operations through strategic collaborations and modern infrastructure.”
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