In an effort to enhance security within the cryptocurrency industry, Coinbase Institutional has made its multi-party computation (MPC) cryptography library available to the public.
MPC technology mitigates the risks of theft and unauthorized access by enabling several parties to sign transactions without revealing their private keys. On March 27, Coinbase declared the open-sourcing of tools designed for transaction signing and secure key management strategies, accompanied by technical documentation to assist developers in integrating MPC into their platforms.
With the code now accessible on GitHub, developers and organizations can seamlessly incorporate MPC into their security frameworks. Coinbase aims to accelerate the broader adoption of advanced security features throughout the industry by making these tools open-source. Additionally, the company has introduced a bug bounty initiative for security researchers to help pinpoint any potential issues in the code.
Since its launch in 2021, Coinbase Prime, the institution-focused platform, has experienced substantial growth, securing $404 billion in assets and enabling $364 billion in quarterly trading volume for institutions. The platform currently supports more than 430 assets for custody and 250 for trading. Ensuring security remains its foremost concern as an increasing number of institutions turn to Coinbase Prime for secure transactions and asset custody.
The recent initiative by Coinbase Institutional comes at a time when the crypto sector is facing a surge in cyberattacks. In the first quarter, hackers managed to steal $1.64 billion, marking the most severe quarter in terms of security breaches to date, as per Immunefi’s Q1 2025 report.
A staggering 94% of all losses were incurred on centralized platforms, with the Bybit hack alone representing $1.53 billion, making it the largest exploit in the history of cryptocurrency. Ethereum (ETH) and BNB Chain (BNB) emerged as primary targets for on-chain attacks, undergoing 15 and 19 exploits respectively.
To date, only $6.5 million, or 0.4% of the total amount stolen in Q1, has been recovered. Coinbase’s decision to share its MPC library publicly could be a significant development toward bolstering security measures in the sector as cybercriminals grow increasingly sophisticated.