Wednesday, December 8

Google Invests $1 Billion in First Bitcoin Futures Broker

The world’s third-largest company by market value, Google (Alphabets) has invested $1 billion in brokerage CME, one of the first to list Bitcoin futures in 2017.

This movement in the financial market was informed in a press release this Thursday (4). Thus, the entire Chicago Mercantile Exchange (CME) technology infrastructure is expected to migrate to Google Cloud servers.

With the acquisition, GOOGL shares rose 1.33% in the market, currently quoted at US$ 2,974.00. CME, on the other hand, saw its shares also listed on Nasdaq increase in value by 0.88% with the new partnership.

Google invests in brokerage that was first to list Bitcoin futures

According to release companies, the new partnership will last 10 years and will be strategic for both parties. In this way, CME’s derivatives processes will be brought to the Google Cloud, expanding the services’ digitization process.

According to CME CEO Terry Duffy, the new partnership will be important to expand access to more people in the market.

“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.”

In his explanation, the CEO of CME also said that this transition will be smooth and fully transparent for customers, who will benefit from new market opportunities.

Starting in 2022, all CME trading markets will operate from the Google Cloud, which features a wide range of analytics tools. Google also made a $1 billion investment in the company, buying preferred shares without voting rights.

Google Cloud CEO Thomas Kurian highlighted that CME is an innovator in the financial market, helping investors access new markets.

“CME Group has a century-long history of helping investors access new markets and is known for innovation in financial markets.”

Bitcoin futures launch in 2017 and Ethereum minifutures coming soon

It is worth remembering that CME was a pioneer in launching futures contracts in December 2017, when, alongside Cboe, it was one of the first traditional institutions to enter this sector.

However, next December 2021, CME will again launch a product in the cryptocurrency market, which will be the mini Ethereum contracts, announced last Tuesday (2). The expectation is that the new products arrive on the 6th, which helped to raise the price of Ethereum in the market, which broke its historical maximum in the market.