MPC Custody (Multi-Party Computation)
Multi-Party Computation (MPC) custody is a cryptographic approach where a private key is split across multiple parties or devices so that no single entity ever #Ethereum #ETH #VirtualEthereumIndex
Multi-Party Computation (MPC) custody is a cryptographic approach where a private key is split across multiple parties or devices so that no single entity ever holds the full key. Transactions are authorized through distributed computation, reducing single-point-of-failure risk and enabling sophisticated access controls. MPC is popular in institutional crypto custody because it supports policies similar to TradFi operations–role-based approvals, audited workflows, and resilience against insider threats. For Ethereum adoption, MPC custody underpins many brokerages, trading firms, and custody providers managing ETH, stablecoins, and tokenized RWAs at scale. MPC can also complement multisigs or replace some multisig complexity depending on architecture. The tradeoff is that MPC introduces additional operational and vendor dependencies; security depends on correct implementation and robust governance around key shares. As mainstream products like ETFs and tokenized funds grow, MPC-based custody becomes part of the “invisible plumbing” that enables regulated participation. Long-tail queries like “institutional crypto custody,” “MPC wallet,” and “ETF crypto custodian” are common because operational security is a gating factor for serious capital moving into Ethereum ecosystems. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary