CME Group Begins Tokenization Pilot with Google — What It Means for Finance
CME Group, one of the biggest names in global derivatives trading, is working with Google Cloud to test how tokenization could change the way traditional finance works.
The collaboration was announced on March 25, and it marks a big move toward bringing real-world finance onto modern blockchain rails. CME is using a tool called Google Cloud Universal Ledger (GCUL) — a special kind of distributed ledger technology built specifically for large financial institutions.
“We believe GCUL can deliver significant efficiencies for collateral, margin, settlement and fee payments as the world moves toward 24/7 trading,” said Terry Duffy, CME Group Chairman and CEO.
In simpler terms, Duffy is saying that the current financial system is still slow and often shut during nights or weekends. With blockchain, everything could move faster and around the clock — and that’s where Google Cloud’s new ledger may help.
What Is Asset Tokenization?
Tokenization is when you take something real — like stocks, bonds, or even real estate — and create a digital version of it on a blockchain. These digital versions, called tokens, can then be moved or traded instantly without going through the usual paperwork-heavy process of traditional finance.
Imagine converting a gold bar or a stock certificate into a secure digital token that lives on a blockchain. That token proves ownership and can be bought, sold, or used as collateral — all digitally.
What Will CME and Google Test?
While the announcement didn’t say which exact assets would be tokenized, the two companies plan to start testing GCUL with capital markets participants in 2026. That means big banks, trading firms, or investment houses will get involved in the pilot program to see how tokenized finance could work at scale.
]Right now, much of the financial world still runs on systems that were built decades ago. Trades settle slowly, fees are high, and many financial services are only available during business hours. Tokenization changes all that.
By moving real-world financial instruments to a blockchain — even in a private form — companies like CME Group could eliminate middlemen, speed up settlements, and cut costs dramatically.
This also gives investors more flexibility. You wouldn’t have to wait until Monday morning to close a trade. You could do it Saturday night if needed.
It’s also about efficiency. Today, only about $25 trillion of the world’s $230 trillion in securities is actually being used as collateral in finance. That’s just over 10%. But as Yuval Rooz, co-founder of Digital Asset, wrote in a March 24 article for the World Economic Forum:
“Tokenization could significantly expand liquidity and capital efficiency.”
In other words, by digitizing more assets, institutions can unlock trillions of dollars that are currently sitting idle.
Tokenization Is Getting Real
For years, tokenization was mostly just a buzzword in crypto circles. But in 2025, it’s becoming real.
BlackRock CEO Larry Fink, for example, said in January that he wants U.S. regulators to approve tokenized stocks and bonds quickly. He believes tokenization can improve transparency and reduce fees across the financial system.
“I think the SEC should rapidly approve the tokenization of securities,” Fink told CNBC.
And it’s not just big investment firms getting ready.
Meanwhile, data from RWA.xyz shows the real-world asset (RWA) tokenization market is already worth nearly $20 billion — and that doesn’t even include stablecoins like USDT or USDC. The market is growing fast, and more institutions want in.
CME’s partnership also echoes the vision of President Donald Trump, who recently promised to make the United States the global capital of crypto and blockchain. Under his administration, tokenization is expected to receive major support from regulators.
So, What Happens Next?
CME and Google Cloud won’t launch the full product yet — they’ll start testing in 2026 with select market participants. If all goes well, this could lead to tokenized derivatives and other complex financial instruments becoming widely available on a blockchain-based system.
It could be a huge shift — not just for Wall Street, but for global markets.
If the world’s biggest financial institutions start using tools like GCUL to tokenize everything from treasuries to commodities, we could be looking at a future where traditional finance and blockchain finally merge — not as rivals, but as one system.
TokenFi has been talking about tokenization for a while now, focusing on making the process simple and accessible for everyone. With its upcoming RWA Tokenization Module, users will be able to tokenize real-world assets seamlessly without needing any technical expertise.
