Coinbase Institutional has open-sourced its multi-party computation (MPC) cryptography library in a bid to strengthen security standards across the cryptocurrency industry. The move comes amid a surge in crypto-related cyberattacks and aims to promote more secure transaction practices for developers and institutions alike.

By making this advanced cryptographic toolkit public, Coinbase encourages the adoption of privacy-preserving and theft-resistant technology across the ecosystem. The GitHub release includes tools for secure key protection, transaction signing, and thorough documentation to support integration into third-party systems.

What Is MPC and Why It Matters

https://x.com/CoinbaseInsto/status/1905296276662386762

Reduces single-point failure and strengthens private key security

MPC allows multiple parties to collectively sign transactions without exposing their individual private keys. This reduces the risk of internal theft, phishing, and external compromise by distributing trust and responsibility among several actors.

Coinbase’s decision to open-source these tools is not only a technical milestone but a strategic one. It signals the company’s dedication to fostering an open, secure infrastructure for institutional-grade crypto custody and trading.

Coinbase’s Security Track Record

Coinbase Prime hits $404B in assets under custody

Since launching in 2021, Coinbase Prime has emerged as a key player in institutional crypto services. The platform currently handles $364 billion in quarterly trading volume and supports 430+ assets for custody. Security remains the cornerstone of its business model as high-value clients demand reliability and safety.

To reinforce this mission, Coinbase has paired the open-source launch with a bug bounty program. Security researchers are invited to analyze the code and report vulnerabilities, potentially earning rewards and contributing to a more robust industry standard.

Alarming Rise in Crypto Hacks in Q1 2025

Over $1.6B stolen, centralized platforms hardest hit

Coinbase’s move comes at a critical time. According to Immunefi’s Q1 2025 report, the crypto sector experienced its worst quarter for hacks on record, with $1.64 billion stolen by attackers. A staggering 94% of those losses occurred on centralized platforms.

The Bybit hack alone resulted in $1.53 billion in losses, making it the largest exploit in the history of crypto. On-chain attacks focused heavily on Ethereum (15 incidents) and BNB Chain (19 incidents), highlighting vulnerabilities in smart contract infrastructures.

An Industry-Wide Call to Action

Open collaboration may be the way forward

Only $6.5 million of the stolen funds from Q1 has been recovered—less than 0.5%. As threat actors become more sophisticated, traditional security models are proving inadequate. Open-source collaboration, like Coinbase’s MPC initiative, may represent a path forward by enabling global developers to test and improve foundational technologies.

This release not only increases transparency but also levels the playing field for newer or smaller firms that lack access to advanced cryptographic tools. Industry stakeholders are already calling it a potential turning point in securing the digital asset landscape.