Google’s parent company, Alphabet Inc., has invested $ 1 billion in the Chicago Mercantile Exchange Group, the exchange responsible for many crypto derivatives. This is the first time the company has invested in products related to cryptocurrency.
In a press release from the CME group, the company announced Alphabet’s $ 1 billion investment in addition to a 10-year strategic partnership with Google Cloud that aims to accelerate the move from the stock market to the cloud and to change the way global derivatives markets operate.
Google made the investment through the company’s convertible non-voting preferred stock. The ad also stated, “As part of the deal, CME Group will migrate its technology infrastructure to Google Cloud starting next year with data and clearing services, and eventually move all of its markets to the cloud.”
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According to the announcement, the partnership will focus on delivering significant benefits to all market players by expanding access, building real-time data and analytics capabilities, introducing new products and services, by increasing the efficiency and strengthening the resilience of the financial market ecosystem.
Terry Duffy, President and CEO of CME Group said: “Through this long-term partnership with Google Cloud, CME Group will transform derivatives markets through technology, expanding access and creating efficiencies for all market players. To ensure a smooth transition, we will work closely with clients to implement a phased approach. This partnership will allow CME Group to bring new products and services to market faster, all in a flexible and evolving environment that will create a wide range of opportunities for the market.
Thomas Kurian, CEO of Google Cloud, said: “CME Group has a century of experience in helping investors access new markets and is known for its innovation in financial markets. Bringing together the best financial talent of the CME Group with the deep engineering expertise of Google Cloud will help accelerate technological innovation in capital markets infrastructure. “
Terry Duffy has appointed Ken Vroman to the new role of Chief Transformation Officer to facilitate the cloud migration for CME Group.
The CME group was behind the first Bitcoin (BTC) futures contract launched in December 2017. Since then, the exchange has continued to expand its crypto derivatives offering to include micro BTC futures, BTC options and micro-ether futures (ETH).
According to data from CME Group, the average daily volume of its Bitcoin futures contracts reached 6,243 contracts as of November 3, with 13,417 open interest contracts. At the time of publication, the market capitalization of the company is $ 79.21 billion, making it a significant player in the industry.
CME stock trades on the NASDAQ stock exchange, currently trading at $ 220.57 per share at the time of writing.