In a significant effort to bolster security across the cryptocurrency landscape, Coinbase Institutional has publicly released its multi-party computation (MPC) cryptography library.
The adoption of MPC technology significantly reduces the risks associated with theft or unauthorized access by enabling multiple parties to sign transactions securely without revealing their private keys. On March 27, Coinbase unveiled its open-source transaction signing tools and robust key protection methods, accompanied by technical documentation aimed at assisting developers in incorporating MPC into their systems.
With this initiative, developers and organizations can access the code to seamlessly integrate MPC into their security frameworks. Coinbase is dedicated to encouraging broader industry adoption of advanced security features through this open-source approach. Additionally, the company has introduced a bug bounty program to empower security researchers to identify any vulnerabilities in the code.
Since its launch in 2021, Coinbase Prime, the institution-focused platform, has rapidly expanded, managing $404 billion in assets and facilitating a staggering $364 billion in quarterly institutional trading volume. It currently offers custody for over 430 assets and trading capabilities for 250. Enhancing security remains paramount as more institutions turn to Coinbase Prime for reliable transactions and custody solutions.
This strategic move by Coinbase Institutional comes at a time when cyberattacks on the cryptocurrency sector have surged alarmingly. In the first quarter of 2025 alone, hackers stole $1.64 billion, marking it as the most damaging period for security breaches on record, according to a recent report.
A staggering 94% of all losses were attributed to centralized platforms, with the Bybit hack accounting for $1.53 billion, the largest exploit in crypto history. Ethereum (ETH) and BNB Chain (BNB) faced the highest number of on-chain attacks, with 15 and 19 incidents, respectively.
So far, only $6.5 million, or 0.4% of the total stolen funds in Q1, has been recovered. Coinbase’s decision to make its MPC library open-source could prove pivotal in elevating security measures within the sector as cybercriminal tactics become increasingly sophisticated.
