Google Recently Warned That Quantum Computers Could Crack Bitcoin. Now It's Selling Protection.
Alphabet's planned crypto custody platform is catering to institutions that are increasingly concerned about their cybersecurity.
In October 2024, Google Cloud unveiled its new cryptocurrency custody system designed to safeguard crypto assets from potential theft due to advanced quantum computers. This system, called Multi-Party Compute (MPC), splits each private key into fragments and stores these fragments on separate systems, making it significantly harder for hackers to access the keys through traditional methods.
However, the service's potential revenue generation for Alphabet remains uncertain due to several factors, including the unclear pricing, competition in the crypto custody space, and the lengthy timeline for quantum computers to potentially break Bitcoin's encryption. The service's connection to quantum cybersecurity is also a long shot, as most timelines don't expect powerful enough quantum computers to exist for at least the next five years.
Despite these uncertainties, if quantum computers advance faster than expected, Google could be well-positioned to offer a quantum-safe custody option, potentially attracting more institutional investors.
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