Google prepares crypto custody feature for banks
Google's Multi-Party Compute tool would provide banks with greater security for the custody and transfer of cryptocurrencies and tokenized assets. It is currently in preview but could become a reality by 2027
Google is preparing to launch, possibly by 2027, a tool called Google Multi-Party Compute that will allow banks to offer cryptocurrency custody and transfer without centralizing a complete private key in a single location.
Presented in New York this week, the tool is aimed at banks and other financial institutions that need to safeguard and transfer cryptocurrencies and tokenized assets.
The service is not yet available; it remains in preview. But the focus is on maintaining control over who gains control of the private key, since that person has the ability to “dispose of the associated funds, making its custody a central security point for banks and institutional providers.”
The technology company’s proposal aims to “prevent that complete secret from existing in a single location.” Essentially, Multi-Party Compute (MPC) divides the key into fragments held by different parties, instead of maintaining a complete copy on a single system.
The goal is to secure operations with cryptocurrencies and tokenized assets, helping to prevent “a compromised credential or an unauthorized transfer from directly leading to an attacker gaining control of the funds.”
M.Pino
Source: diariobitcoin
(Reference image source: Shubham Dhage on Unsplash)
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