Coinbase and Google Cloud Enter 'Long-Term, Strategic Partnership'

Coinbase and Google Cloud have entered into a "long-term, strategic partnership" to benefit the Web3 ecosystem.

The exchange says it's planning to use Google Cloud to build "advanced exchange and data services" — enabling it to process blockchain data at scale.

As part of the arrangement, Coinbase customers are set to benefit from "machine learning-driven crypto insights," an announcement said.

Meanwhile, Google Cloud customers will be given the option to pay for services through certain cryptocurrencies — in what could be a boon for adoption.

Brian Armstrong, the co-founder and CEO of Coinbase, said:

"With more than 100 million verified users and 14,500 institutional clients, Coinbase has spent more than a decade building industry-leading products on top of blockchain technology. We could not ask for a better partner to help execute our vision of building a trusted bridge into the Web3 ecosystem."

Google Cloud's CEO, Thomas Kurian, said the tech giant wants to make it "faster and easier" to build in Web3, adding:

"We're ready to serve the thriving global Web3 customer and partner ecosystem. Our focus is making it frictionless for all customers to take advantage of our scalability, reliability, security, and data services, so they can focus on innovation in the Web3 space."

Coinbase's share price rallied on the news — accelerating 6.5% to $71.40. It's a rare bit of good news considering the stock has been battered for most of this year. As well as falling in lockstep with Bitcoin, investors have been rattled by a slowdown in trading volumes, as transaction fees are a core part of the exchange's revenue.

Google's involvement will also raise questions over whether Web3, step by step, is becoming more like Web2.

Back in January, Google Cloud confirmed that it was building a new, dedicated "Digital Asset Team to help underpin the blockchain ecosystems of tomorrow."

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