Google to Launch Crypto Custody Security System as AI & Quantum Threats Grow

Google to unveil a new crypto custody security system using multi-party computation (MPC) to help banks and other financial institutions safeguard and transfer digital assets. This comes amid private-key hack concerns due to growing AI and quantum computing.

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Google to Unveil Crypto Custody Security System

Google Multi-Party Compute (MPC) is under private preview with major institutions for a security system to safeguard crypto custody. Notably, parent company Alphabet is using it for its own assets on Ethereum and Solana.

Digital Asset Security and Multi-Party Computation (MPC) Symposium in New York City on October 28. The commercial availability is planned for early 2027.

Google Multi-Party Compute splits private keys into parts distributed across separate environments so no single machine holds the full key. A bank could hold one share on its own hardware, another in Google Cloud, and a third with a different provider.

Customers will retain control of their keys. Google says it cannot access the shares in unencrypted form even when they reside on its infrastructure, eliminating a single point of failure that has led to large-scale losses in the crypto sector.

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Growing Concerns Over AI and Quantum Threats

Google is positioning the offering as a defense against sophisticated cyberattacks. Crypto scammers are using AI tools to identify issues and security gaps in blockchain security and projects.

Meanwhile, some researchers are using AI to find the gaps and warn crypto projects. As CoinGape reported earlier, researchers discovered a bug in XRP Ledger, which would have created hundreds of new XRP tokens.

Recently, Ethereum co-founder Vitalik Buterin warned that crypto industry needs to view risks posed by AI-accelerated math seriously. The industry needs to minimize exposure not just to quantum-vulnerable cryptography, but also potentially AI-vulnerable cryptography. Vitalik Buterin claimed AI-accelerated maths could weaken lattice-based cryptography in 2 years.

While no quantum computer exists yet, roughly 6.9 million Bitcoin are potentially vulnerable to future quantum threats. This is because their public keys have been exposed. Google MPC currently focuses on stopping compromised credentials and unauthorized transactions.

The move comes amid growing tradFi-crypto convergence. Institutional crypto custody is no longer just a vault, but has become an operational layer for digital finance.

As major fund managers introduce crypto-linked products, adopting qualified institutional crypto custody solutions remains essential to secure asset reserves.