Google Debuts Crypto Security System As A.I. Threat Intensifies

Google parent company Alphabet (NASDAQ: $GOOGL) is planning to launch a new cryptocurrency custody security service as the threat posed to digital assets by artificial intelligence (A.I.) intensifies. 

Alphabet plans to showcase a new security system designed to help banks and other financial institutions safeguard crypto and tokenized assets at its digital asset symposium on Oct. 28.

The product, officially named “Google Multi-Party Compute,” is in preview mode and not yet available to the public. 

Several financial institutions are reportedly testing the technology. It will eventually be used to help secure digital assets on the Ethereum (CRYPTO: $ETH) and Solana (CRYPTO: $SOL) blockchains.

Alphabet plans to make Google Multi-Party Compute commercially available in early 2027 but has not disclosed the pricing.

Development of the crypto security system comes as banks and other financial institutions explore using blockchains to issue tokenized assets, process payments, and offer custody. 

Those activities require institutions to securely authorize transactions that, once completed on a blockchain, cannot be reversed.

There are growing concerns that A.I. could attack and gains control of the private keys that protect the digital wallets in which crypto such as Bitcoin (CRYPTO: $BTC) is held. 

The hacking of private keys is already a problem. Blockchain analytics firm Chainalysis reports that 44% of cryptocurrency stolen in 2024 was due to private key hacks. 

The crypto industry is also preparing for the rise of powerful quantum computers, which could also hack digital wallets and steal cryptocurrencies in the not-too-distant future. 

GOOGL stock has gained 20% over the past 12 months to trade at $320.58 U.S. per share.