At the latest Google Cloud Next conference, it was revealed that Google is partnering with cryptocurrency exchange company Coinbase to allow customers to pay for its cloud services using various forms of cryptocurrency starting in early 2023.
As noted in reports from outlets like CNBC, the move could help Google draw more cutting-edge companies over to its cloud services given that Google’s competitors don’t presently offer options for customers to pay for services using digital currency. It may also help Google parent company Alphabet further diversify its revenue sources, with things like advertising revenue accounting for 9 percent of total revenue.
Back in Google’s (GOOGL) Q2 2022 earnings call, it was revealed that advertising revenue topped $56 billion, an 11.4 percent growth from the previous quarter. Cloud revenue also increased at that time to $6.7 billion, up $1.6 billion from the previous year.
With the new partnership, Coinbase will move its data-related applications to Google’s cloud, having previously used Amazon Web Services. Coinbase will also earn a percentage of revenue from transactions exchanged through it.
In terms of how things will roll out in 2023, Google Cloud Platform will begin accepting crypto payments from a select handful of Web3 customers via an integration with Coinbase Commerce as noted by Amit Zavery, vice president and general manager, and head of platform, at Google Cloud in an interview with CNBC.
Following the initial rollout, Google will begin to open things up and give more customers the ability to use cryptocurrency as a form of payment, with Coinbase Commerce supporting 10 different currencies including Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, and Litecoin, to name just a few.
Google is also reportedly looking into Coinbase Prime, described as an “integrated solution that provides secure custody, an advanced trading platform, and prime services” to help manage crypto assets in one singular place. Google’s Amit Zavery remarked that Google aims to look into and experiment in order to “see how we can participate” in Coinbase Prime.
For more on the Google and Coinbase partnership, be sure to read through the report from CNBC. And for more Google news in general, check out some of our previous coverage including Google’s advertising revenue topping $56 billion in Q2 2022, and Google pushing back its third-party cookie replacement to 2024.