Coinbase Institutional open-sources MPC library to promote industry-wide security

To improve security in the cryptocurrency sector, Coinbase Institutional has made its multi-party computation cryptography library publicly available.

MPC technology lowers the risk of theft or illegal access by allowing multiple parties to sign transactions without disclosing their private keys. Coinbase announced on Mar. 27 that they have open-sourced tools for transaction signing and safe key protection techniques, alongside technical documentations to help developers in integrating MPC into their systems.

We’re open-sourcing our multiparty computation (MPC) cryptography library, setting a new industry benchmark for cryptographic transparency.

While this technology already helps safeguard Coinbase assets, we’re raising the bar for security across the industry by making it…

— Coinbase Institutional 🛡️ (@CoinbaseInsto) March 27, 2025

With the code now available on GitHub, developers and organizations can easily integrate MPC into their security systems. Coinbase hopes to promote the industry’s wider adoption of state-of-the-art security features by open-sourcing these tools. The company has also launched a bug bounty program for security researchers to help identify errors in the code.

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Since its debut in 2021, Coinbase Prime, the company’s institutional platform, has grown rapidly, securing $404 billion in assets and facilitating $364 billion in quarterly institutional trading volume. It currently supports over 430 assets for custody and 250 for trading. Improving security continues to be its top priority as more institutions adopt Coinbase Prime for safe transactions and custody.

Coinbase Institutional’s latest move coincides with the rapid surge in cyberattacks against the crypto industry. In the first quarter alone, hackers stole $1.64 billion, making it the worst quarter for security breaches in history, according to Immunefi’s Q1 2025 report.

94% of all losses were on centralized platforms. The Bybit hack alone accounted for $1.53 billion, making it the biggest exploit in crypto history. Ethereum (ETH) and BNB Chain (BNB) were the main targets for on-chain exploits, with 15 and 19 attacks, respectively.

Only $6.5 million, or 0.4% of the total funds stolen in Q1, has been recovered so far. Coinbase’s move to make its MPC library open-source may be a step toward improved security measures for the sector as hackers become more sophisticated.

Read more: https://crypto.news/bybit-hack-security-measures-would-prevent-a-repeat/

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