What Is the Significance of Multi-Party Computation (MPC) in Institutional Crypto Custody?

MPC is a cryptographic technique that allows multiple parties to jointly compute a function over their inputs while keeping those inputs private. In custody, it enables the private key to be split into several shards held by different parties or systems.

This eliminates a single point of failure, enhancing security and allowing for flexible, policy-based signing of transactions, which is essential for institutional governance and compliance.