Coinbase In The Cloud

Coinbase In The Cloud

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  • Google (GOOGL, $97.18) is partnering with Coinbase (COIN, $70.16) to let customers pay for its cloud services in “select” cryptocurrencies. According to Coinbase and Google, crypto-based payments will become available to customers in the Web3 space early next year to start. Coinbase shares rose as much as 8.4% in Tuesday’s trading session, although the stock is still down over 70% for the year.

  • To enable these payments, Google will use Coinbase Commerce, a tool that lets businesses receive, accept, and convert cryptocurrencies, including Bitcoin, Ethereum, USD Coin, Tether USD, Dogecoin, Shiba Inu, and others. Coinbase will take a cut of transactions made through its commerce tool.

  • Coinbase, which generates a majority of its revenue from retail transactions, will move data-related applications to Google from the market-leading Amazon Web Services cloud, which Coinbase has relied on for years, said Jim Migdal, Coinbase’s vice president of business development.

Why it matters

Google Cloud has been actively advancing its presence in the Web3 world since publishing a blog post on Jan. 27 stating that it will launch an entire internal team dedicated to digital assets. Blockchain technologies such as nonfungible tokens, or NFTs, have become a bigger focus for Google’s cloud division. The cloud business helps diversify Google's parent Alphabet away from advertising, and it now accounts for 9% of revenue

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