CME Group has started a pilot program with Google Cloud to explore asset tokenization and improve payment processes using blockchain technology, according to a March 25 announcement.
The companies have completed the first phase of integrating and testing Google Cloud's Universal Ledger (GCUL), a blockchain system designed for institutional finance.
The pilot program is testing how GCUL can help with secure and efficient digital transfers for tasks like collateral management, margining, settlement, and fee payments.
CME Group’s Chairman and CEO, Terry Duffy, said this initiative aligns with recent calls for clearer financial regulations and supports the company’s plan to modernize its infrastructure.
He added:
“As the President and new Administration have urged Congress to create clear market regulations, we are excited to work with Google Cloud to find cost-effective, digital solutions for transferring value.”
The announcement also mentioned that the Universal Ledger could support financial operations 24/7, meeting the growing need as digital markets extend beyond traditional hours.
Later this year, CME and Google Cloud will begin testing the platform with market participants, with plans to launch tokenization services in 2026. However, they did not share details about the tokens or assets involved in the pilot.
A Solution for Institutions
Google Cloud’s Universal Ledger is a programmable blockchain system designed to work with traditional financial institutions. It helps simplify asset management and enables secure digital transfers between participants.
Rohit Bhat, Google Cloud’s General Manager for Financial Services, explained that the partnership with CME Group is part of their broader goal to address the complexities of capital markets.
He added:
“Working with CME Group on GCUL shows how Google Cloud helps businesses transform through modern infrastructure and strategic partnerships.”
