From artificial intelligence to Crypto Assets? Google reveals ambitions: launching its own L1 Blockchain!

Global big tech giant Google is extending its strategic reach into the intersection of encryption assets and artificial intelligence (AI) computing with unprecedented depth and breadth. From ensuring the infrastructure for AI computing power to regulating the application ecosystem, and now officially releasing its self-developed Layer-1 blockchain, a series of actions by Google reveals its immense ambition to not only be present but even aspire to lead the next wave of financial technology.

Entering the encryption currency industry

Google's layout has not been achieved overnight but started from the upstream of the industrial chain. Recently, Google has reached a significant cooperation with the Bitcoin mining company TeraWulf through its AI cloud platform partner Fluidstack. According to the agreement, Google not only guarantees a lease obligation of up to $1.8 billion to support the project’s debt financing but also obtains warrants to acquire approximately 41 million shares of TeraWulf's common stock, corresponding to about 8% equity.

Subsequently, this collaboration deepened further. Google added $1.4 billion in guarantees, bringing its total guarantee amount to $3.2 billion, in exchange for additional warrants, ultimately raising its estimated equity stake in TeraWulf to 14%. Upon the release of this news, TeraWulf's stock price surged nearly 90% in just five days, with a very enthusiastic market response.

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 owned by Bitcoin mining companies, such as GPU clusters, is highly compatible with the needs of AI computing centers. Many mining companies have begun to diversify their business and shift towards the AI data center field during market fluctuations.

Google's move is truly a case of 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 designed specifically for liquid-cooled AI workloads, which meets Google's urgent demand for reliable and sustainable computing infrastructure. On the other hand, through equity depth binding, Google is not only a customer but also becomes an important shareholder of this AI infrastructure provider, ensuring the security of its critical computing power supply chain in the future AI competition.

While laying out on 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 encryption assets.

According to the new regulations that will take effect on October 29, 2025, developers of cryptocurrency exchanges and software wallet applications must obtain local regulatory approval and comply with legal standards when launching services in specific regions such as Hong Kong, the United States, the United Kingdom, Canada, and certain EU countries. For example, in Hong Kong, it is necessary to obtain relevant licenses from the Securities and Futures Commission (SFC), while in the United States, registration as a money services business with the Financial Crimes Enforcement Network (Fin CEN) is required.

This policy update initially sparked widespread discussion and concern in the industry, fearing it would stifle innovation. However, Google later clarified 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, leading to confusion.

This move demonstrates Google's cautious and pragmatic attitude in the encryption field: prioritizing compliance and user safety, 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 Google's support for the continued innovation of decentralized finance (DeFi). By establishing a standardized application ecosystem, Google is laying the groundwork for deeper integration of financial services in the future.

Centralized "Blockchain"

After completing the layout of the periphery, Google has finally revealed its most ambitious trump card - the launch of its own native Layer-1 Blockchain network "Google Cloud Universal Ledger" (GCUL).

According to an official article released by Google and an introduction by Rich Widmann, the head of its Web3 strategy, GCUL is a new platform aimed at addressing the rise of stablecoins and the challenges posed by traditional payment systems. Google believes that the current global financial infrastructure suffers from fragmentation, complexity, high costs, and slow speeds, which is estimated to lead to a loss of 2.6% of global GDP by 2030 due to this fragmentation. Meanwhile, digital assets, represented by stablecoins, are experiencing explosive growth, with trading volumes reaching 30 trillion dollars in 2024, far surpassing traditional payment tools like PayPal, indicating a strong market demand for more efficient and low-cost payment solutions.

GCUL is exactly the solution proposed by Google for this purpose. It does not aim to overturn the existing financial system with a "revolution," but rather hopes to reimagine the infrastructure through "evolution." The core goal of GCUL is to serve regulated financial institutions, enabling them to leverage the existing commercial banking currency 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 currency accounts and facilitate cross-border transfers, allowing traditional financial institutions to enjoy near real-time, low-cost, and around-the-clock 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 technological foundation. Simplified development and costs: The platform supports the widely popular Python language for writing smart contracts and provides stable, transparent monthly settlement transaction fees, rather than adopting the highly volatile pre-paid Gas fee model like 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 sparked strong doubts within the crypto community.

The core values of the encryption field are built on the foundation of decentralization, permissionless access, and trustworthy neutrality. Critics argue that a permissioned chain operated by a U.S. company closely tied to the government fundamentally violates these principles. One trader commented, "I think they do not understand the true meaning of 'trustworthy neutrality' in the context of Blockchain." Another user bluntly stated, "Complete centralization? Then they shouldn't even call it Blockchain."

This controversy reflects a clash of two worldviews. On one hand, there is the encryption-native community's insistence on ideals of openness, anti-censorship, and decentralization; on the other hand, there are big tech companies like Google, attempting to "tame" Blockchain technology to fit within existing business and regulatory frameworks, thereby applying it to trillion-dollar payment and capital markets.

Conclusion

Looking at Google's recent developments, from investing in TeraWulf to ensure AI Computing Power, to adjusting Play Store policies to establish a compliant ecosystem, and launching the GCUL Blockchain tailored for financial institutions, its strategic path is clearly visible.

This is not a complete embrace of the utopian ideals of the crypto world, but rather a meticulously calculated business strategy. Google's goal is to leverage its technology, brand, and vast customer network to become an indispensable infrastructure provider in the transition from traditional finance to digital finance. It aims to address the inefficiencies of traditional finance without disrupting the existing monetary system, thereby tapping into the vast global payments and capital markets.

The launch of GCUL signifies that Google is no longer satisfied with indirect participation, but instead wants to personally step in to define the rules of the next generation of financial technology. Despite the significant controversy surrounding its centralized model, it is undeniable that when a big tech giant like Google fully invests, it will greatly promote the application and evolution of Blockchain technology in mainstream society and profoundly impact the future landscape of the financial world. This game between centralization and decentralization has just begun.