Google develops Blockchain Layer-1 with CME group

Tech giant we2.0 dips its toes into Layer 1

Google’s entry into the Layer-1 blockchain space comes after years of gradual approaches to blockchain technology. Since 2018, the company has integrated Bitcoin blockchain data into its cloud services, expanding to include 11 other blockchains such as Ethereum, Arbitrum, and Avalanche by 2023. The launch of GCUL, confirmed by Rich Widmann, Global Director of Web3 Strategy at Google Cloud, represents a significant step forward, positioning Google as a direct competitor rather than just a service provider. The shift is in line with a broader industry trend where tech giants are looking to control core infrastructure, challenging the notion that blockchain is solely a decentralized space.

The partnership with CME Group, a global leader in derivatives trading, further solidifies the move. CME, which has been exploring blockchain for years — as evidenced by its Bitcoin and Ethereum futures markets — completed the first phase of integrating and testing GCUL in March 2025. The pilot program targets use cases such as collateral management, margin, settlement, and fee settlement, with the aim of enabling efficient 24/7 trading. Terry Duffy, chairman and CEO of CME Group, has tied the initiative to the US administration’s efforts to push for “fair market structure” legislation, suggesting a calculated response to regulatory incentives following President Trump’s pro-crypto stance. However, this raises questions about whether the move is truly innovative or just a strategic alignment with political and regulatory changes.

Google’s motivation appears to be driven by the explosive growth of the tokenization market, which is expected to reach $276 billion by 2034 from its current valuation of $19.5 billion, excluding stablecoins. The company aims to position GCUL as a neutral, Python-based layer-1 blockchain with smart contract capabilities that appeals to financial institutions looking for interoperability without vendor lock-in. However, GCUL’s private, permissioned nature—as opposed to the public, decentralized nature of blockchains like Solana or Ethereum—suggests an approach tailored to institutional control, potentially at odds with blockchain’s original vision of decentralization.

Strategic and technical information

The GCUL platform, currently in private beta, is designed to simplify account and asset management while facilitating secure transfers across a permissioned network. Integration with CME’s infrastructure marks a key test of scalability and compliance, with live testing with market participants expected by the end of 2025 and a full launch in 2026. This timeline reflects a cautious approach that allows for refinement based on feedback, but also delays immediate impact, raising skepticism about its urgency.

The significance of this partnership lies in its potential to connect traditional finance with blockchain. Tokenization — the conversion of real-world assets such as stocks, bonds, and commodities into digital tokens — has attracted attention, with an estimated $25 trillion of the $230 trillion in eligible securities currently tokenized. Google and CME aim to unlock this liquidity, promising efficiencies in payments and capital markets. However, the lack of specifics on which assets will be tokenized, as noted in the initial announcements, has left room for speculation about the scope and feasibility of the pilot.

More importantly, Google’s involvement challenges the notion that blockchain is just a foundational technology. By developing a Layer 1 solution focused on organizations, Google is competing with public blockchains and private offerings from companies like Ripple or IBM. The use of Python-based smart contracts, a change from Solidity, may attract developers familiar with Google’s ecosystem, but it also risks fragmenting the developer community, raising concerns about long-term adoption.

Evaluation and Conclusion

Google’s official entry into the development of its own Layer 1 blockchain through a partnership with CME Group, announced in March 2025 and testing on August 27, 2025, marks a turning point in the development of blockchain technology. By testing asset tokenization with GCUL, the tech giant and derivatives leader aims to modernize capital markets, promising to bring efficiency and liquidity on a global scale.

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