Alphabet Inc. (NASDAQ: $GOOGL), the parent company of Google, is set to unveil a new security solution for cryptocurrency custody as the risks associated with artificial intelligence (A.I.) increase.
The company is expected to demonstrate this innovative security system, aimed at helping banks and other financial entities protect crypto and tokenized assets, during its digital asset symposium on October 28.
The service, which is currently in its preview phase, is titled “Google Multi-Party Compute” and is not yet available to the general public.
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A number of financial institutions are currently testing this technology, which is intended to enhance the security of digital assets on the Ethereum (CRYPTO: $ETH) and Solana (CRYPTO: $SOL) blockchains.
Alphabet plans to launch Google Multi-Party Compute for commercial use in early 2027 but has not revealed any pricing details.
This development arrives as banks and other financial companies explore the use of blockchains to issue tokenized assets, process payments, and provide secure custody.
Such activities necessitate that institutions securely authorize transactions that, once finalized on a blockchain, cannot be reversed.
Concerns are growing that A.I. could target and take control of the private keys protecting digital wallets that store cryptocurrencies like Bitcoin (CRYPTO: $BTC).
Compromising private keys has become a significant issue; according to blockchain analytics firm Chainalysis, 44% of cryptocurrency thefts in 2024 were attributed to private key hacks.
The cryptocurrency sector is also bracing for the emergence of advanced quantum computers, which pose a potential threat to digital wallets and could lead to significant cryptocurrency theft in the near future.
Over the past year, GOOGL shares have risen by 20%, currently trading at $320.58 per share.