Coinbase announces the open-sourcing of tools for transaction signing and secure key protection techniques, along with technical documentation to assist developers in integrating MPC into their systems.
Coinbase Institutional has taken a significant step towards improving security in the cryptocurrency sector by open-sourcing its multi-party computation (MPC) cryptography library.
This initiative aims to promote industry-wide security by making advanced cryptographic tools publicly available.
The core idea behind this open-sourcing effort is that MPC technology can lower the risk of theft or illegal access to cryptocurrency assets. It enables multiple parties to sign transactions without disclosing their private keys, thus enhancing security.
Coinbase announced that they have open-sourced tools specifically for transaction signing and safe key protection techniques, accompanied by technical documentation to assist developers in incorporating MPC into their systems.
By making their MPC library open-source, Coinbase hopes to set a new industry benchmark for cryptographic transparency.
The accessibility of this technology has been made easier as the code is now available on GitHub, allowing developers and organisations to integrate MPC into their security infrastructure readily. Coinbase intends to encourage the broader adoption of these state-of-the-art security features throughout the cryptocurrency industry.
To further bolster the security of this open-sourced library, Coinbase has also launched a bug bounty program. This encourages security researchers to actively participate in identifying and reporting any potential errors within the code.
This move by Coinbase Institutional is particularly timely given the rapid increase in cyberattacks targeting the cryptocurrency industry. The first quarter of 2025 saw a staggering $1.64 billion stolen by hackers, marking it as the worst quarter for security breaches on record, according to Immunefi’s Q1 2025 report.
Notably, 94% of these losses occurred on centralised platforms, with the Bybit hack accounting for a significant $1.53 billion. This context underscores the urgency and importance of proactive security measures like the open sourcing of MPC technology. Coinbase’s initiative is seen as a potential step towards improved security measures for the sector as cybercriminals become increasingly sophisticated.
It is worth noting that Coinbase Institutional’s platform, Coinbase Prime, has experienced rapid growth since its debut in 2021, securing a substantial $404 billion in assets and facilitating $364 billion in quarterly institutional trading volume. Their continued focus on improving security aligns with institutions’ increasing adoption of Coinbase Prime for secure transactions and custody.
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