Coinbase, the biggest cryptocurrency exchange in the US, is on “cloud nine” because it has teamed up with Google to help the tech giant accept cryptocurrency payments for its cloud services. Reports also say that this payment method will be made available at the beginning of 2023, and that Coinbase will use Google’s cloud infrastructure. The “partnership” was announced at Google’s Cloud Next conference. It will help bring innovative companies to Google in a fast-paced market that is very competitive. The deal would be unique because Google’s biggest competitors don’t let customers pay with digital currencies yet.
Jim Migdal, Coinbase’s VP of business development, said that the cryptocurrency exchange will switch its data-related applications from Amazon Web Services cloud, which has been its partner for years, to Google Cloud. In a similar way, the NEAR Foundation recently teamed up with Google Cloud to help Web3 start-ups grow faster.
So, the infrastructure of the “Google Cloud Platform” will give out its services in stages.
Amit Zavery, the Vice President and General Manager of Google Cloud and the head of the platform, said that the platform will first accept cryptocurrency payments from a few Web3 clients who want to pay with cryptocurrency using the Coinbase Commerce service.
Over time, Google will let more customers pay with cryptocurrency. Coinbase Commerce currently works with ten different currencies, including Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, and Litecoin.
So far, the deal’s terms have not been made public. Migdal said that Coinbase will usually get a cut of transactions that go through it, just like it does with other Coinbase Commerce deals.
Zavery also said that Google wasn’t sure at first if it would use Coinbase to handle the payments, since PayPal (NASDAQ:PYPL) can also do the same thing. Zavery said that in the end, Coinbase had the most potential.
Google is also looking at ways to use Coinbase Prime, a service that stores firms’ cryptocurrencies safely and lets them make trades. Zavery said that Google will try out different ways to handle cryptocurrency assets and see what works best.
Among the companies that have added crypto assets to their balance sheets are Block, Coinbase, MicroStrategy, and Tesla (NASDAQ:TSLA).
Migdal said that Coinbase had been talking to Google for a long time about supporting business transactions, using the cloud, and the Prime services.
Migdal told us:
We made the decision to get them together.
As for Google Cloud, it has helped Google’s parent company, Alphabet (NASDAQ:GOOGL), move away from advertising. IT now makes up 9% of revenue, up from less than 6% three years ago.
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