Google is going to rely on a cryptocurrency exchange, Coinbase, to accept payments for its cloud service starting in early 2023.
After the announcement, Coinbase stock rose by 8.4% on Tuesday.
At Google’s Cloud Next conference, the company seemed determined to incorporate digital currency payments to help lure big companies into a competitive and rapidly growing market. Alphabet’s cloud business accounts for 9% of its revenue.
Coinbase vice president of business development, Jim Migdal, said that the company would move data-related applications to Google Cloud from Amazon Web Services Cloud, which it relied on for years.
Initially, the Google Cloud Platform will accept cryptocurrencies from a handful of customers in the Web3 world, reported the vice president, general manager, and head at Google Cloud while conversing with CNBC.
Over time more customers will be allowed to make payments using cryptocurrency. Coinbase supports 10 currencies, which have declined by 60% in the past year.
Coinbase is expected to earn a percentage from the transactions that go through its platform, while Google is already exploring Coinbase Prime, a service that stores organizations’ cryptocurrency and enables them to make transactions.