CME Group, a major market in commercial derivatives for institutions, said that it explores tokenization as a means of improving the efficiency of the capital market with distributed registry of the Google Cloud American technology.
The two companies plan to start direct tests with market players later this year and aim to launch new services in 2026, according to a press release on Tuesday. CME will use Universal Ledger recently introduced from Google Cloud, a programmable private network to test how the digital asset infrastructure can rationalize regulation and compensation.
The decision of the two giants underlines the trend for red tokenization which has captivated cryptographic companies and traditional financial companies. The world’s managers and banks of assets are increasingly exploring means of using block chain rails to move traditional financial instruments such as funds, bonds and other titles. They do it to pursue efficiency gains and faster, cheaper and 24 hours a day. The tokenized assets could develop on the market for several dollars by the end of the decade, according to several reports from the BCG, McKinsey and Bernstein industry.
“As the president and the new administration have encouraged the congress to create historical legislation for the structure of the common sense market, we are happy to associate ourselves with Google Cloud to allow innovative solutions for the digital transfer of digital value at low cost,” said Terry Duffy, President of the CME group and CEO. “Google Cloud Universal Ledger has the potential to provide significant efficiency for guarantees, margin, payment and payments while the world is evolving towards 24/7 trading.”
