At this year’s Cloud Next conference, Google recently announced a new partnership with Coinbase that will allow a limited number of customers to pay for cloud services using cryptocurrencies such as BTC, ETH, DOGE, and Tether’s USDT. The feature is said to be implemented early next year.
The new payments experience, powered by Coinbase Commerce, which enables merchants worldwide to accept cryptocurrency payments in a decentralized manner, will allow Google Cloud’s customers and partners to expand the payment options for Google Cloud services.
Coinbase, which makes the majority of its money from retail transactions, will migrate data-related applications to Google from Amazon Web Services cloud, which Coinbase has relied on for years, according to Jim Migdal, Coinbase’s vice president of business development.
Google x Coinbase Partnership Details
In the partnership announcement, Coinbase fleshed out the components of the partnership, stating that the partnership will enable Web3 developers to access Google Cloud blockchain data via BigQuery, a fully managed enterprise data warehouse that Coinbase Cloud’s Node service will power. The integration will supposedly allow developers to run Web3-based systems instantaneously and consistently without needing expensive and complex infrastructure.
Moreover, Google will utilize Coinbase Prime for institutional cryptocurrency services such as reporting and custody. Coinbase Prime is an integrated solution that offers institutional investors and corporations custodial services and an advanced trading platform.
Coinbase noted that the partnership was not a one-way relationship, detailing how utilizing Google’s services will help Coinbase scale its business, stating:
“Coinbase selected Google Cloud as a strategic cloud provider to build advanced exchange and data services. Coinbase will use Google Cloud’s powerful computing platform to process blockchain data at scale and enhance the global reach of its crypto services by leveraging Google’s premium fibre-optic network. Coinbase will also build its global data platform on Google Cloud’s secure infrastructure and leverage their leading data and analytics technologies to provide Coinbase customers with machine learning-driven crypto insights.”
‘Validation’ For The Crypto Industry
According to Owen Lau, senior analyst at the investment firm Oppenheimer, Coinbase’s recent deal with Google could set a precedent for other crypto-based companies looking to work with traditional firms.
The senior Oppenheimer analyst noted that the partnership could be a sign of ‘validation’ for the blockchain industry as a whole.
Many big-name brands have opted to incorporate blockchain technology into their business model. Most recently, Starbucks partnered with Polygon for its NFT rewards program. However, the tech giant is considered the most prominent company thus far to supplement its business with blockchain technology.
Lau went on to say, “Many crypto-native companies will go after these white-labeling paths, which is to provide the back-end crypto technology surfaces to traditional players so that they can expand their [Total Addressable Market]”.
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