Google Cloud is launching Universal Ledger – a service built on distributed ledger technology, designed to simplify global settlements and the issuance of financial products for banks and other market participants. The platform operates in a closed environment and is intended to work with commercial bank money, including multi-currency operations and automated payments.
What GCUL Offers
According to the announcement, Universal Ledger (GCUL) is a cloud-based tool for handling digital assets, transfers, and payment automation. The service does not require institutions to build their own blockchain infrastructure: everything is available through a single API.
The system supports operations with multiple currencies and digital assets, with fixed monthly transaction fees – unlike cryptocurrencies, where fees are volatile and charged for each transfer.
The statement notes that GCUL is compatible with any digital wallet and enables payment automation, asset management, and the launch of new financial products. The program is built around cybersecurity and regulatory compliance requirements: all accounts go through KYC verification, and the platform’s architecture incorporates compliance standards.
New Infrastructure for Settlements
According to Google, GCUL offers financial institutions and their clients several advantages. Users get 24/7 access to the payment system, low fees, and fast transfers, including cross-border payments. Banks and fintech companies reduce infrastructure and operational costs by eliminating reconciliations, minimizing errors, and simplifying regulatory compliance. This allows them to focus on developing new products.
At the same time, banks retain control over customer relationships, using their existing licenses and infrastructure. GCUL operates as a private permissioned system with the ability to expand access as regulation evolves.
Capital Markets and Settlement Problems
Google compares the launch of GCUL to the digital transformation of the stock market, where electronic trading reduced costs and increased liquidity. However, outdated processes remain in the payments industry: settlements can take several days, requiring additional collateral and creating risks.
The development of digital assets and distributed ledgers is complicated by the fact that settlement systems and asset issuance platforms remain fragmented. This prevents efficient use of innovation and increases costs, according to the company’s statement.
Google Cloud’s Solution
GCUL provides infrastructure that unifies issuance, management, and settlement of digital assets. The system supports “atomic settlements” – transactions that are completed instantly and without the risk of partial execution. This reduces market risks, improves liquidity, and creates opportunities for issuing new instruments – bonds, funds, and collateral.
Google Cloud is also exploring the use of instruments backed by bankruptcy-remote assets, such as central bank deposits or money market funds. This is intended to enable around-the-clock capital movement with minimal risks and improve the resilience of the new financial infrastructure.
The document highlights that GCUL operates on a partnership model and does not compete with traditional businesses, but complements them with digital capabilities. Google has already opened a waitlist and invites representatives of financial institutions to join discussions about the product.
Earlier: Google Tightens Requirements for Crypto Apps in the US, EU, and Several Other Countries
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