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<h2 id="tldr">TLDR</h2>
<ul>
 <li>Google is testing a new MPC crypto custody system with major financial institutions ahead of a planned early 2027 launch.</li>
 <li>Alphabet already uses the technology to protect digital assets on Ethereum and Solana.</li>
 <li>The system separates private-key control across different environments to reduce the risk of unauthorized transfers.</li>
 <li>Google plans to support future post-quantum security upgrades, but has not announced a release date.</li>
</ul>
<p>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.</p>
<h2 id="google-tests-crypto-custody-service-with-banks">Google Tests Crypto Custody Service With Banks</h2>
<p><a href="https://x.com/gregory_raymond/status/2115407880023154868?a=mRHGNccbUQvdl-mE_BI&amp;s=20" rel="noopener noreferrer nofollow">Google will present</a> 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.</p>
<div class="embed-x">
 <blockquote class="twitter-tweet">
  <p><img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f534.png" alt="🔴" style="height: 1em; max-height: 1em;"> Grosse news : Google va proposer de la conservation de cryptos</p>
  <p>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.</p>
  <p>Le… <a href="https://t.co/gKcvYOhBjQ" rel="noopener noreferrer nofollow">pic.twitter.com/gKcvYOhBjQ</a></p>
  <p>— Grégory Raymond (@gregory_raymond) <a href="https://x.com/gregory_raymond/status/2115407880023154868?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 28, 2026</a></p>
 </blockquote>
</div>
<p>Major financial institutions are testing Google Multi-Party Compute, although the company has not named them. Pricing and future bank customers remain undisclosed.</p>
<p>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.</p>
<h2 id="how-the-mpc-security-system-works">How the MPC Security System Works</h2>
<p>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.</p>
<p>The design addresses risks illustrated by a recent<a href="https://blockonomi.com/coindcx-hit-by-15-99m-crypto-hack-tether-steps-in-to-freeze-funds/" rel="noopener noreferrer nofollow"> CoinDCX wallet security breach</a>. The exchange reported losing about $15.99 million in USDT from an old wallet setup. CoinDCX said customer balances remained safe.</p>
<p>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.</p>
<h2 id="recent-attacks-raise-crypto-security-concerns">Recent Attacks Raise Crypto Security Concerns</h2>
<p>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.</p>
<p>Separately, hardware wallet maker Foundation reported a<a href="https://blockonomi.com/foundation-warns-passport-bitcoin-wallet-users-after-cloudflare-api-key-breach/" rel="noopener noreferrer nofollow"> Cloudflare API key breach</a> on October 26. Attackers sent fake emails from company domains, but Foundation said its Passport devices and stored Bitcoin were not compromised.</p>
<p>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.</p>
<p>The announcement follows fresh institutional payment projects. Circle and ACI Worldwide announced a<a href="https://blockonomi.com/circle-and-aci-worldwide-to-test-usdc-stablecoin-settlement-in-colombia/" rel="noopener noreferrer nofollow"> USDC settlement test in Colombia</a>, 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.</p>
<p>The post <a href="https://blockonomi.com/google-plans-crypto-custody-launch-as-security-threats-grow/" rel="noopener noreferrer nofollow">Google Plans Crypto Custody Launch as Security Threats Grow</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.</p>

Google Plans Crypto Custody Launch as Security Threats Grow

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