Google Cloud Enters Blockchain Race with GCUL: A Scalable, Permissioned Network for Institutions

Google Cloud has entered the blockchain race with a project called Google Cloud Universal Ledger (GCUL), a Layer-1 network aimed at institutions. GCUL is designed to fix cross-border payments and asset settlements with reliability, billing APIs, and compliance tools. It trades decentralization for enterprise-grade reliability, smart contracts, and institutional trust. The project is in private testnet and aims to support live services by 2026, with participant onboarding in 2025.

Google Cloud has entered the blockchain race with the introduction of Google Cloud Universal Ledger (GCUL), a Layer-1 network specifically designed for institutional use. GCUL aims to address the challenges of cross-border payments and asset settlements by offering a reliable, enterprise-grade solution. The network supports Python-based smart contracts and is positioned as a neutral infrastructure layer accessible through a single API with predictable monthly fees [1].

Google Cloud Universal Ledger is currently running in a private testnet and has already been integrated into a pilot with CME Group. The derivatives exchange is testing tokenized assets and wholesale payments on the ledger, which completed its first phase of integration earlier this year. Wider market-participant trials are scheduled for late 2025, with commercial services expected to follow in 2026 [1].

By launching GCUL, Alphabet Inc. moves beyond cloud hosting into protocol development, positioning itself in direct competition with other corporate blockchains like Stripe’s Tempo and Circle’s Arc. Rich Widmann, Google Cloud’s head of Web3 strategy, emphasizes the importance of neutrality, stating that institutions are unlikely to rely on blockchains controlled by direct competitors. GCUL is marketed as an open, enterprise-grade alternative that banks and payment processors can trust [1].

The introduction of GCUL coincides with a broader trend in the cryptocurrency market where Layer 1 (L1) blockchains are being undervalued despite their foundational role in enabling AI-driven decentralized applications (dApps). While AI-driven tokens have drawn speculative capital, L1s like Polygon 2.0 and Chainlink (LINK) are seen as undervalued due to their scalability and institutional partnerships [2]. This presents a compelling case for contrarian investors seeking to capitalize on market inefficiencies.

Contrarian investors should focus on Layer 1 blockchains that offer energy-efficient AI use cases and institutional partnerships. For example, Cardano (ADA) and Hedera (HBAR) are gaining traction due to their energy-efficient proof-of-stake mechanisms and partnerships with Google and IBM, respectively [2]. Additionally, XRP’s On-Demand Liquidity (ODL) service and ADA’s potential for a spot ETF approval highlight the long-term value of these Layer 1 blockchains.

In the context of Bitcoin Layer 2 solutions, the listing of Bitlayer (BTR) on KuCoin adds visibility to the project. Bitlayer aims to bring smart contract functionality to Bitcoin using the BitVM framework, enabling scalable and low-cost decentralized applications [3]. The collaboration to launch YBTC on Solana further demonstrates Bitlayer’s commitment to making Bitcoin DeFi more accessible.

As the cryptocurrency market continues to evolve, investors should consider the foundational layers that will power the next wave of blockchain innovation. While AI-driven tokens may dominate headlines, the true value lies in Layer 1 blockchains that provide the infrastructure for AI's decentralized future. For investors with a long-term horizon, the current sell-offs in L1s represent a rare opportunity to position for the next phase of blockchain innovation.

References:
[1] https://thedefiant.io/news/blockchains/google-cloud-unveils-universal-ledger-blockchain-institutional-payments-cme-e57c3635
[2] https://www.ainvest.com/news/contrarian-opportunities-undervalued-layer-1-blockchains-crypto-volatility-ai-driven-hype-2508/
[3] https://coinedition.com/kucoin-announces-listing-new-bitcoin-layer-2-token-bitlayer-btr/