Cryptocurrency exchange operator Coinbase Global (NASDAQ: COIN) just struck a partnership with Google and its parent company, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). This deal is a two-way street, where each partner is making a serious commitment to the other. Coinbase is moving its cloud-based operations from Amazon Web Services (AWS) to the Google Cloud platform. In return, Google Cloud and its clients will use Coinbase's tools to process crypto-based payments.

This is a win-win-win situation, where perhaps the biggest winner of all is the global community of crypto-focused developers. As a shareholder of both Coinbase and Alphabet, I'm thrilled to see these companies taking this big step together. Here's what it all means for investors on both sides of the agreement.

At first glance, Coinbase looks like the primary winner here. That's the conclusion Wall Street reached on Tuesday, letting Alphabet's two stocks close 0.7% lower while Coinbase ended the day of the announcement 4.7% higher. And the market reaction makes sense. After all, Alphabet is the larger company by far, with annual revenue 50 times Coinbase's. Any move that helps Coinbase tap into Google's and Alphabet's massive business has to be more helpful to the smaller partner.

Continue reading

Source Fool.com