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

by

🤯 Crypto Chaos: The Great Heist of Q1 2025 🤑

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

As the wolves of cyberattacks circle the cryptocurrency sector, a glimmer of hope emerges from the depths of the underworld. Coinbase Institutional, that bastion of financial stability, has decided to open its MPC library to the world. Ah, the sweet taste of transparency!

But what does this mean for the rest of us? Simply put, it’s a recipe for security. With this library, multiple parties can sign transactions without revealing their private keys, a clever trick to thwart the thieves. Coinbase, ever the altruist, has released its tools for transaction signing and safe key protection techniques, along with technical documentations to help developers integrate this magic into their systems.

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

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

Now, the code is available on GitHub, and developers can easily integrate this 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. And, in a bold move, the company has launched a bug bounty program for security researchers to help identify errors in the code. Ah, the sweet taste of accountability!

But, alas, the crypto industry is not without its problems. 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. And, of course, improving security continues to be its top priority, as more institutions adopt Coinbase Prime for safe transactions and custody.

But, oh, the irony! The rapid surge in cyberattacks against the crypto industry coincides with Coinbase’s latest move. 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. Ah, the sweet taste of failure! 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

2025-03-28 08:45