CME Group to Explore Tokenization through Google Cloud Partnership
CME Group is set to partner with Google Cloud in a venture to modernize capital markets via asset tokenization following the new Universal Ledger.
Key Points:
- CME Group is collaborating with Google Cloud to assess tokenization, leveraging the Universal Ledger to enhance efficiency in capital markets.
- The partnership anticipates beginning testing of digital asset infrastructure for streamlined settlement and clearing, targeting service launch in 2026.
- This initiative reflects a broader trend where traditional financial institutions are adopting blockchain technologies for efficient, continuous settlements.
CME Group, a leading derivatives trading platform, announced its exploration of tokenization to enhance capital market efficiency using Google Cloud’s distributed ledger technology. The two companies plan to initiate direct tests with market participants later this year, aiming to introduce new services by 2026, as detailed in a press release.
The partnership underscores a growing trend in financial sectors harnessing blockchain technology for effective and prompt settlements. With many global asset managers and banks experimenting with blockchain for moving conventional financial instruments like funds and bonds, the tokenized asset market could expand to a multitrillion-dollar sector by 2030, as indicated by various industry reports from BCG, McKinsey, and Bernstein.
“As the President and new Administration have encouraged Congress to create landmark legislation for common-sense market structure, we are pleased to partner with Google Cloud to enable innovative solutions for low-cost, digital transfer of value,” stated Terry Duffy, CME Group Chairman and Chief Executive Officer. “Google Cloud Universal Ledger has the potential to deliver significant efficiencies for collateral, margin, settlement, and fee payments as the world transitions to 24/7 trading.”
For further details, you can read more articles on CoinDesk.
