MPC Custody refers to Multi-Party Computation (MPC)-based crypto custody solutions that enhance security by eliminating the need for a single private key. Unlike traditional custody models that store a full private key in one place, MPC custody splits the key into multiple encrypted shares distributed among different parties or devices. This ensures that no single entity has complete control, reducing risks such as hacking, insider threats, and key loss.
Why Institutions Prefer MPC Custody?✅ Eliminates Single Points of Failure – No full private key exists anywhere.
✅ Enhanced Security – Cryptographic signing occurs without revealing key fragments.
✅ Role-Based Access Control – Allows businesses to set transaction approval policies.
✅ Regulatory Compliance – Many MPC custody providers offer AML/KYC compliance tools.
✅ Seamless Recovery Options – No traditional seed phrase, reducing risk of total asset loss.