# Custody Consolidates Into Banks and Clouds

Key management for institutional and eventually retail crypto will keep concentrating in a small number of banks and cloud providers offering policy-controlled MPC custody, which creates central points of control and legal process over assets that were designed to be held directly.

- Conviction: 40 / 100 (forming)
- Horizon: Emerging (watchlist)
- Tracking since: 2026-10-29T00:00:00.000Z
- Last updated: 2026-10-29T06:37:07.675Z
- Canonical: https://polylog.news/crypto/trends/custody-consolidates-into-cloud-and-banks
- Publisher: Polylog

## Recent evidence

- [confirms] Google Previews a Multi-Party Computation Custody Service That Splits Bank Signing Keys Across Rival Clouds (2026-10-29): Google previewed a multi-party computation (MPC) custody service that splits bank signing keys across rival clouds. Several financial institutions are testing it in private preview, Alphabet already uses it for its own assets, and commercial availability is planned for early 2027. A hyperscaler entering policy-controlled key management directly advances the concentration of custody among a few cloud providers and banks.