Global tech giant Google is extending its strategic reach into the intersection of crypto assets and artificial intelligence (AI) computing with unprecedented depth and breadth. From securing the infrastructure for AI computing power to regulating the application ecosystem, and now to officially releasing its self-developed Layer-1 blockchain, Google's series of actions reveal its huge ambition to not be absent from the next wave of fintech, and even to lead the trend.
Entering the cryptocurrency industry
Google's layout is not accomplished overnight, but has already begun from the upstream of the industrial chain. Recently, Google, through its AI cloud platform partner Fluidstack, reached a far-reaching cooperation with Bitcoin mining company TeraWulf. According to the agreement, Google not only provided a guarantee for a lease obligation of up to 1.8 billion US dollars to support the project's debt financing, but also obtained warrants to acquire approximately 41 million shares of TeraWulf's common stock, corresponding to approximately 8% of the equity.
Subsequently, this cooperation was further deepened. Google added $1.4 billion in guarantees, bringing its total guarantee amount to $3.2 billion, and exchanged for additional warrants, eventually increasing its estimated equity stake in TeraWulf to 14%. As soon as this news came out, TeraWulf's stock price soared nearly 90% in just five days, and the market reacted extremely enthusiastically.
On the surface, this is an investment in a Bitcoin mining company, but the core motivation behind it stems from the explosive growth in AI computing demand. AI training and inference require massive computing resources, and the infrastructure such as GPU clusters owned by Bitcoin mining companies is highly compatible with the needs of AI computing centers. Many mining companies have begun to diversify their business and shift to the field of AI data centers when the market fluctuates.
Google's move can be described as killing two birds with one stone. On the one hand, TeraWulf has next-generation AI infrastructure powered by low-cost, zero-carbon energy, such as its Lake Mariner data center in New York State, equipped with facilities specifically designed for liquid-cooled AI workloads, which can meet Google's urgent need for reliable and sustainable computing infrastructure. On the other hand, through deep equity binding, Google is not only a customer, but also an important shareholder of this AI infrastructure provider, thereby ensuring the security of its key computing power supply chain in the future AI competition.
While laying out at the infrastructure level, Google is also adjusting policies in its core application distribution platform Google Play Store to establish a compliance framework for the further integration of crypto assets.
According to the new rules that will take effect on October 29, 2025, developers of crypto asset exchanges and software wallet applications must obtain permission from local authorities and comply with legal standards when publishing services in specific regions such as Hong Kong, the United States, the United Kingdom, Canada, and some EU countries. For example, in Hong Kong, it is necessary to obtain the relevant license from the Securities and Futures Commission (SFC), and in the United States, it is necessary to register as a money service business with the Financial Crimes Enforcement Network (Fin CEN).
This policy update initially sparked widespread discussion and concerns in the industry, fearing that it would stifle innovation. However, Google officially clarified afterwards that the restrictions of the new policy do not cover 'Non-custodial wallets', acknowledging that the previous use of the term 'software wallets' was not precise enough, causing confusion.
This move shows Google's cautious and pragmatic attitude in the crypto field: prioritizing compliance and user security, reducing the risk of fraudulent applications, and establishing clearer rules of the game for the market. At the same time, the exemption for non-custodial wallets is also seen as a positive signal, indicating that Google supports the continued innovation of decentralized finance (DeFi). By establishing a standardized application ecosystem, Google is laying the foundation for deeper financial service integration in the future.
Centralized 'Blockchain'
After completing the peripheral layout, Google finally showed its most ambitious trump card - launching its own native Layer-1 blockchain network 'Google Cloud Universal Ledger' (GCUL).
According to articles published by Google and the introduction of Rich Widmann, Head of Web3 Strategy, GCUL is a new platform designed to address the challenges of the rise of stablecoins and traditional payment systems. Google believes that the current global financial infrastructure has pain points of fragmentation, complexity, costliness, and slowness. It is estimated that this fragmentation may cause a 2.6% loss in global GDP by 2030. At the same time, digital assets, represented by stablecoins, are experiencing explosive growth, with a transaction volume of 30 trillion US dollars in 2024, far exceeding traditional payment tools such as PayPal, showing a strong market demand for more efficient and low-cost payment solutions.
GCUL is the solution that Google has proposed for this. It does not aim to disrupt the existing financial system with a 'revolution', but hopes to reimagine the infrastructure through 'evolution'. The core goal of GCUL is to serve regulated financial institutions, allowing them to leverage the existing commercial banking money system to provide innovative payment services and financial products on a modern decentralized ledger.
The main features of GCUL include:
Designed for financial institutions: It aims to simplify the management of commercial bank money accounts and facilitate cross-border transfers, providing traditional financial institutions with near real-time, low-cost, 24/7 services.
Compliance and security first: GCUL initially operates as a 'private and permissioned' system, emphasizing KYC verification and compliance, leveraging Google's own secure and reliable technology base.
Simplified development and costs: The platform supports smart contracts written in the widely popular Python language and offers stable, transparent monthly settlement transaction fees, rather than the volatile prepaid gas fee model used by public chains.
However, Google's grand vision has not won applause from everyone. When GCUL was described as a 'private and permissioned system', it immediately triggered strong doubts in the crypto community.
The core values of the crypto space are built on decentralization, permissionless access, and credible neutrality. Critics argue that a permissioned chain operated by a U.S. company with close ties to the government fundamentally violates these principles. One trader commented, 'I don't think they understand what 'credible neutrality' really means in the blockchain context.' Another user bluntly said, 'Completely centralized? They shouldn't even call it a blockchain.'
This controversy reflects a clash of two worldviews. On the one hand, it is the crypto-native community's adherence to the ideals of openness, censorship resistance, and decentralization; on the other hand, it is the attempt of tech giants such as Google to 'tame' blockchain technology, making it conform to existing commercial and regulatory frameworks, so that it can be applied to trillion-dollar-level payment and capital markets.
Conclusion
Looking at Google's recent developments, from investing in TeraWulf to secure AI computing power, to adjusting Play Store policies to establish a compliant ecosystem, and to launching the GCUL blockchain tailored for financial institutions, its strategic path is clear.
This is not a complete embrace of the utopian ideals of the crypto world, but a carefully calculated business layout. Google's goal is to leverage its technology, brand, and vast customer network to become an indispensable infrastructure provider in the digital transformation of traditional finance. It seeks to address the inefficiencies of traditional finance without disrupting the existing monetary system, thereby tapping into the massive global payments and capital markets.
The launch of GCUL marks Google's shift from indirect participation to personally defining the rules of the next generation of fintech. Although its centralized model has sparked huge controversy, it is undeniable that when giants like Google fully invest, it will greatly promote the application and evolution of blockchain technology in mainstream society and profoundly affect the future landscape of the financial world. This game between centralization and decentralization has only just begun.
