Google to preview a new crypto security system as private-key hacks mount

Google said it has not previously offered a dedicated MPC custody product for cryptocurrencies. Its existing production services include Google Cloud Key Management Service (KMS) and Cloud HSM, which institutions use to manage and protect cryptographic keys. The new offering brings MPC-based signing, transaction policies and key recovery into a purpose-built service for digital assets, rather than requiring customers to assemble those capabilities themselves.

The move comes as banks and other financial companies explore using blockchains to issue tokenized assets, process payments and offer digital asset custody services. Those activities require institutions to securely authorize transactions that, once completed on a blockchain, generally cannot be reversed.

“Digital asset adoption and tokenization are at an inflection point. As regulated financial institutions begin adopting blockchains and tokenization, they need scalable, proven infrastructure to secure their clients’ assets," Rich Widmann, director of digital assets strategy at Google Cloud, told CoinDesk.

An attacker who gains control of the private key protecting a wallet may be able to transfer its assets without the owner's permission, making key management a critical security challenge for institutions entering the market.

The threat has already cost the crypto industry billions of dollars over the years. According to blockchain analytics firm Chainalysis, compromised private keys accounted for 43.8% of cryptocurrency stolen in 2024. Separately, DeFiLlama data showed that as of June of this year, blockchain projects have lost a cumulative $16.69 billion to hacks and exploits, with roughly 40% of those losses attributed to private-key compromises.