Google wants to keep cryptocurrencies from banks and financial institutions

Home » Crypto News » Blockchain News » Google wants to keep the cryptocurrencies of banks and financial institutions

https://cryptoast.fr/google-mpc-multi-party-compute-securisation-crypto-banques/

The American giant Google is taking advantage of its first symposium dedicated to digital assets, organized in New York, to lift the veil on its service offering called Google Multi-Party Compute (MPC). This is a security service for cryptos and tokenized assets, which is tailor-made for banks and large financial institutions.

As reported by CoinDesk, which revealed the information, the product is currently in a closed testing phase, but several financial institutions are already experimenting with it (without Google wishing to disclose their identity for the moment). Marketing is planned for the beginning of 2027, at a price which remains unknown.

Significant detail: Alphabet, the parent company of Google, has also already started using this system internally, to secure its own digital assets on the Ethereum and Solana blockchains. The group does not, however, specify which cryptocurrencies are concerned.

SCOOP: Google to preview crypto custody security system as AI threats grow @Aoyon_A reports https://t.co/NIH2nkVN59

Alphabet already secures its assets on Ethereum and Solana: to buy ETH or SOL, you can go through an exchange platform like Kraken.

Technically, MPC (multi-party computation) technology is nothing new. The principle consists of cutting a private key into several fragments, distributed across independent systems. No single machine holds the complete key, removing the single point of failure. Google also ensures that its customers maintain control of their key fragments, which it cannot access in plain text, even when they are hosted on its servers.

In the configuration proposed by Google, a bank can, for example, keep one fragment at Google Cloud, another on its own infrastructure and a third at a competing cloud provider. Before each signature, a rules engine checks the transaction against the institution's internal policies: transfer limits, authorized addresses, cross-validations between services.

Another advantage highlighted by Google: the flexibility of the signature scheme. The system can adapt to different configurable thresholds, for example requiring 2 out of 3 or 5 out of 7 participants to jointly produce the signature of a transaction. A bank can thus calibrate the level of requirements according to the risk profile of the operation, by involving several internal services before any validation.

This announcement comes in a context where compromised private keys remain one of the main causes of losses in the crypto ecosystem. According to a Chainalysis report cited by CoinDesk, compromised private keys were responsible for 43.8% of stolen cryptocurrencies in 2024. DefiLlama data for its part suggests approximately $16.7 billion in cumulative losses at the end of June 2026, of which approximately 40% attributed to key compromises.

Machine-translated from French