Summary:
- Coinbase will power cryptocurrency payments for users who leverage Google’s cloud services, per CNBC’s report on Tuesday.
- Google will starts crypto payments with a few customers first before opening up the feature to more users.
- The tech giant announced the agreement with the crypto exchange at the Google Cloud Next conference.
- Coinbase will migrate its data-related applications from Amazon’s Web Services to Google as part of the deal.
- Google could also tap the platform’s custodial service dubbed Coinbase Prime.
Tech giant Google announced a payment partnership with crypto exchange Coinbase to power cryptocurrency payments for cloud services users. The deal unveiled at Google’s Cloud Next conference will open up crypto payments to select users for starters.
In time, Google expects to expand access to this crypto payment option to more cloud services users, head of platform and general manager at Google Cloud Amit Zavery disclosed during an interview. The option to pay in crypto via Coinbase is expected to go live in early 2023, per CNBC’s report on Tuesday.
Notably, the crypto exchange supports 10 cryptocurrencies via its e-commerce solution including Bitcoin (BTC), Bitcoin Cash (BCH), meme token Dogecoin, leading altcoin Ethereum (ETH), and Litecoin (LTC).
Google’s parent company Alphabet opted for the San Francisco-based exchange ahead of other payment service providers like PayPal. Zavery confirmed that the tech giant looked at other companies but the exchange was the most suited for the job.
Coinbase will leverage Google’s cloud infrastructure as part of the deal. The exchange’s president of business development Jim Migdal said that the platform will migrate data-related apps from Amazon’s Web Services Cloud to Google cloud solution.
Coinbase Prime To Provide Alphabet With Crypto Custodial Services
In addition, Google is considering tapping Coinbase prime, a custodial service that allows companies to hold digital assets and deploy hefty trade orders. The same custody solution was onboarded by asset management behemoth BlackRock to provide customers with Bitcoin exposure.
The deals come after speculations broke out in May that Google could add support for crypto payments. At press time, no other cloud services provider boasts digital assets payments, setting Google apart from competitors like Amazon.
Google could also explore adding cryptocurrencies like BTC or ETH to its balance sheet, similar to other tech giants like MicroStrategy and Tesla who bought Bitcoin. However, the company has not officially announced any crypto purchases at press time.