Google Cloud has announced a $1 billion (approximately Rs. 7,434.9 crore) investment in CME Group, a US-based derivatives marketplace, as part of a new 10-year agreement. The financial services company will use Google Cloud servers to run its operations. For those entering the field of “derivatives,” which are financial instruments rather than assets, the two companies seek to offer risk reduction tools and other user-beneficial platforms.
While speaking to a news reporter about the Google cooperation, Terry Duffy, Chairman and CEO of the CME Group, said that the transaction will result in cost savings before adding, “it’s the expansion and growth of the business.”
Every income source, according to the multibillionaire businessman, needs to be backed up by technology.
“It might take years to apply technology inputs in some cases. So going under the Google umbrella, which is so enormous and broad, is another option for us to gather income in real time,” Duffy added.
The CME CEO said the outbreak made him wonder what the world might be like in five years, so he reached out to Google to help the organization improve its technology.
Google Cloud, meanwhile, has welcomed the new cooperation on Twitter.
The CME Group has increasingly focused on providing cryptocurrency-related financial services. Micro Bitcoin and Ether futures have been added to the company’s crypto products as demand for the second-largest digital currency by market capitalization continue to climb.
Micro Bitcoin futures, for example, debuted in May and have already traded over 2.7 million contracts, according to MSN News, which cited the CME Group.
The CME Group’s new series of non-voting convertible preferred shares will be the recipient of Google’s $1 billion equity investment.
According to the Wall Street Journal, Thomas Kurian, CEO of Google Cloud, said when commenting on the transaction, “CME Group has a century-long track record of enabling investors access new markets and is recognised for financial market innovation.” This agreement would “accelerate technical innovation in capital markets infrastructure,” he added.