Alphabet (GOOGL) Showcases Crypto Security Features as AI Risks Mount

Alphabet (GOOGL), the parent company of Google, is showcasing new cryptocurrency security features as the threat posed to digital assets by artificial intelligence (AI) grows more pronounced. Alphabet is debuting a new security system designed to help banks safeguard cryptocurrencies and tokenized assets at its inaugural digital asset symposium being held on Oct. 28.

The crypto security product, called Google Multi-Party Compute, is currently in preview mode and not available to the public or businesses. Media reports say that financial institutions are testing the technology, which helps to secure crypto on the Ethereum (ETH) blockchain. Alphabet plans to make Google Multi-Party Compute commercially available in early 2027.

Google’s key performance indicators. Source: TipRanks

AI Threats to Crypto

Development of the crypto security system comes as financial institutions increasingly used blockchains to issue tokenized assets, process payments, move money across borders, and offer custody services. Those activities and services require institutions to secure transactions that, once completed on a blockchain, cannot be reversed.

There are growing concerns in crypto circles that powerful AI agents could attack and gain control of the private keys that protect the digital wallets in which cryptocurrencies such as Bitcoin (BTC) are stored. The hacking of private keys is already a problem. Blockchain analytics firm Chainalysis reports that 44% of the cryptocurrency stolen in 2024 was due to private key hacks.

Quantum Computer Threats

The crypto industry is also preparing for the rise of powerful quantum computers, which could also hack digital wallets and steal cryptocurrencies in the not-too-distant future. Quantum computers, which are rapidly advancing, are capable of breaking the cryptography that secures Bitcoin and other cryptocurrencies.

The rising threats posed by AI and quantum computers have sent crypto developers and leading technology companies such as Alphabet scrambling to find solutions to protect digital assets from future attacks. The focus is on trying to counter AI and quantum computers before they become too powerful to control, leaving cryptocurrencies and other digital assets such as stablecoins vulnerable.

Is GOOGL Stock a Buy?

The stock of Alphabet has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 24 Buy and four Hold recommendations issued in the last three months. The average GOOGL price target of $425.88 implies 22% upside from current levels.