CME Group, an important marketplace in derivatives acting for institutions, said it is investigating tokenization as a way to improve the effectiveness of the capital market in the US Tech Gigant Google Cloud’s distributed headbox technology.

The two companies are planning to start direct tests with market participants later this year and aim to launch new services in 2026, according to a press release on Tuesday. CME will use Google Cloud’s recently introduced Universal Ledger, a programmable, private network to test how digital asset infrastructure can streamline settlement and clearing.

The two Giants’ Move emphasizes the red -hot tokenization trend that has captivated cryptic companies and traditional financial companies. Global asset managers and banks are increasingly investigating ways to use blockchain rails to move traditional financial instruments such as funds, bonds and other securities. They do this to pursue efficiency gains and faster, cheaper and around the clock. Tokenized assets could grow to the multitrillion-dollar market at the end of the decade, according to several industry reports from BCG, McKinsey and Bernstein.

“Since the president and the new administration have called on Congress to create milestone law for market structure for common sense, we are pleased to cooperate with Google Cloud to enable innovative solutions for low costs, digital transfer of value,” said Terry Duffy, CME Group chairman and CEO. “Google Cloud Universal Ledger has the potential to deliver significant efficiency for security, margin, settlement and fee payments as the world moves towards 24/7 trade.”