Google chooses to make GCUL a permissioned service primarily to meet the strict regulatory and operational needs of financial institutions. By limiting participation to verified entities through mandatory KYC procedures, GCUL ensures compliance with regulatory standards, providing a trusted environment suitable for banks, payment providers, and fintech firms.
This permissioned design contrasts with permissionless public blockchains by offering greater control, security, and predictability, including stable transaction fees and a governed access model. It enables financial institutions to build on a neutral, shared infrastructure without concerns about competing interests dominating the network.
In short, GCUL is permissioned to provide a compliant, scalable, and secure blockchain infrastructure tailored for regulated financial markets, reducing counterparty and settlement risks while accelerating institutional adoption.