US-based finance company CME Group is making waves in the industry as it announces its partnership with Google Cloud to test blockchain technology for trading. The firm is looking to enhance its market infrastructure and global stock trading by utilizing blockchain technology in payment solutions and asset tokenization.
CME Chief Executive Officer Terry Duffy expressed his excitement about the potential of Google Cloud’s Universal Ledger to deliver significant efficiencies for collateral, margin, settlement, and fee payments in the evolving landscape of 24/7 trading. The firm has successfully completed the first phase of testing the blockchain technology, making it the first US exchange to explore this innovative solution.
The decision to test blockchain technology comes at a time when regulatory environments in the US are becoming more favorable towards crypto, blockchain, and digital assets. President Donald Trump’s actions to pause and dismiss cases involving these technologies have created a more conducive environment for companies like CME Group to explore new opportunities.
In a significant development, the case of SEC vs Ripple has seen a dramatic turn with Ripple dropping its cross-appeal against the SEC after the agency decided to withdraw its case against the crypto firm. Under the settlement, the SEC will retain $50 million out of the $125 million penalty levied against Ripple, which was already being held in an interest-bearing escrow account.
Industry leaders like Don Wilson, CEO of DRW Holdings, have long advocated for the benefits of blockchain technology in moving assets quickly and at a lower cost. Wilson’s crypto company has even developed its own blockchain technology named Canton Network, showcasing the growing interest and investment in this space.
Notably, blockchain technology is already being utilized by firms like Goldman Sachs Group Inc. and Moody’s Ratings, further highlighting its potential in revolutionizing the financial industry. CME Group, known for its equity index trading and futures contracts on various assets including cryptocurrency, is now set to leverage blockchain technology in its operations.
This partnership with Google Cloud marks a significant milestone for CME Group in 2021, as they continue to innovate and adapt to the changing landscape of the financial industry. The use of blockchain technology is expected to bring about greater efficiency and transparency in trading, paving the way for a more secure and streamlined market infrastructure.