Google Unveils GCUL L1 Blockchain to Challenge Ethereum
Google has unveiled its GCUL L1 blockchain, a fast, low-cost network built on Google Cloud for stablecoin settlements, payments, and tokenized capital markets. The Google L1 blockchain, named Google Cloud Universal Ledger (GCUL), is currently in private testnet with a public launch scheduled later this year. Industry experts, including Pratik Kala of Apollo Crypto, warn that this move, alongside similar initiatives by Stripe, Tether, and Circle, may erode Ethereum’s market share, where ETH currently handles over 52% of stablecoin settlements (approx. $145 billion) per DeFiLlama. Paxos’s product manager Chuk Okpalugo counters that GCUL is a permissioned chain targeting commercial bank deposits, not public stablecoins. Despite concerns, Ethereum’s dominance in tokenization remains strong at around 52% ($7 billion in assets), and Standard Chartered projects an ETH price target of $7,500 by end-2025, citing growing crypto treasury demand. Traders should watch for potential shifts in settlement volumes and the impact of permissioned versus public chains on market liquidity.
Neutral
While Google’s GCUL L1 blockchain entry adds competitive pressure on public blockchains, its permissioned, bank-deposit focus limits immediate disruption to Ethereum’s open stablecoin and tokenization ecosystems. Market dominance by ETH in stablecoin settlements and tokenized assets remains strong, and major issuers still favor public chains. However, the move signals growing institutional interest in on-chain finance, potentially fragmenting settlement volumes and prompting shifts in liquidity. In the short term, traders may see increased volatility around ETH as news circulates, but long-term impacts depend on adoption levels of permissioned versus public networks. Therefore, the overall market outlook is neutral.