TLDR
Google is testing a new MPC crypto custody system with major financial institutions ahead of a planned early 2027 launch.
Alphabet already uses the technology to protect digital assets on Ethereum and Solana.
The system separates private-key control across different environments to reduce the risk of unauthorized transfers.
Google plans to support future post-quantum security upgrades, but has not announced a release date.
Google plans a crypto custody system that helps banks protect and transfer digital assets without storing complete private keys on one computer. The service uses multi-party computation, or MPC, to reduce exposure to stolen credentials.
Google Tests Crypto Custody Service With Banks
Google will present the system at a digital asset security symposium in New York on October 28. The company expects commercial availability in early 2027, following a private testing period.
Grosse news : Google va proposer de la conservation de cryptos
Le géant américain a dévoilé aujourd’hui le Google Multi-Party Compute. Derrière ce nom (un peu technique) se cache un service pensé pour les banques, qui doit protéger leurs cryptos et leurs actifs tokenisés.
Le… pic.twitter.com/gKcvYOhBjQ
— Grégory Raymond (@gregory_raymond) October 28, 2026
Major financial institutions are testing Google Multi-Party Compute, although the company has not named them. Pricing and future bank customers remain undisclosed.
Alphabet, Google’s parent company, already uses the technology to secure some digital assets on Ethereum and Solana. It has not identified the assets or their value.
How the MPC Security System Works
MPC divides control of a private key among separate computers. A bank could keep one part on its own equipment, another with Google Cloud, and another with a different provider. The parts work together to approve transactions.
The design addresses risks illustrated by a recent CoinDCX wallet security breach . The exchange reported losing about $15.99 million in USDT from an old wallet setup. CoinDCX said customer balances remained safe.
Google says customers control their key shares, including those stored on its cloud infrastructure. The service also checks transfer requests against rules set by the institution before approving them.
Recent Attacks Raise Crypto Security Concerns
Stolen credentials remain a common problem in digital asset storage. Attackers who obtain a working private key can authorize transfers, which are difficult to reverse after blockchain confirmation.
Separately, hardware wallet maker Foundation reported a Cloudflare API key breach on October 26. Attackers sent fake emails from company domains, but Foundation said its Passport devices and stored Bitcoin were not compromised.
Google’s current service targets unauthorized transactions and compromised credentials. It does not claim to stop future attacks that could break existing cryptographic methods through advances in artificial intelligence or quantum computing.
The announcement follows fresh institutional payment projects. Circle and ACI Worldwide announced a USDC settlement test in Colombia , examining how banks could use stablecoins alongside existing payment systems. Google says its system could eventually support post-quantum cryptography, but it has not provided a date for that feature.
The post Google Plans Crypto Custody Launch as Security Threats Grow appeared first on Blockonomi .
