Google to Introduce Crypto Asset Protection System for Banks

Google plans to introduce a system for the secure storage and transfer of cryptocurrencies and tokenized assets by financial institutions. The presentation will take place on October 28 at the company's first digital assets symposium, writes CoinDesk.

Google Multi-Party Compute (MPC) is currently undergoing closed testing with developer partners and several large financial institutions, whose names are not disclosed. Alphabet already uses the system to protect its own cryptocurrencies in Ethereum and Solana. The commercial launch is scheduled for early 2027, and the cost of the service has not been announced.

According to Rich Widmann, Director of Strategy for Digital Assets at Google Cloud, the adoption of cryptocurrencies and tokenization has reached a tipping point: regulated organizations need scalable infrastructure to protect client funds.

The system is built on multi-party computation: the full key is not stored in one place, its fragments are distributed among independent environments. A bank can place one part in Google Cloud, the second on its own infrastructure, and the third with another provider. Signing a transaction may require the participation of two out of three or five out of seven fragment holders. Before signing, the transfer is checked in Google Confidential Space for compliance with internal rules: amounts, recipient addresses, departmental approvals. Google claims it cannot access the keys in unencrypted form.

According to TRM Labs, in the first half of 2026, infrastructure compromise accounted for about 15% of incidents, but approximately 76% of all losses in the crypto industry. In September, the damage from hacks exceeded $768 million, the highest since the beginning of the year. The system does not protect against employee deception or hypothetical signature hacking using AI. Support for ECDSA and Ed25519 will be available at launch, and the timing for post-quantum algorithms is not defined. Google names Fireblocks, Fordefi, and BitGo as competitors.