Google likes to create capital-A alliances. Quite infamous then. But the latter can actually mean something, as it tries to bring together software and hardware partners in collaboration for many new security technologies, enabling hardware-based encryption for things like digital keys, secure documents and wallets. Google calls it the Android Ready SE Alliance.
In the announcement, Google says that they are working with hardware partners to create devices with a Secure Element, a dedicated chip that handles encryption and decryption at the hardware level. Google̵
Exactly how this will work becomes quite technical: lots of pre-start verification and constantly validated key exchanges between SE tags and applets. But Google’s immediate goal related to Android is to support digital car keys, such as the latest iPhones and some BMWs, and more secure than Hyundai’s Bluetooth / NFC key system. Google also hopes to support digital ID cards, including certain national identification systems and the emerging mDL standard.
Google says they have “several Android OEMs” ready to add Android Ready SE to their devices, but does not actually show any by name. You can expect something to come out of this for the next Pixel release, but whether it does for the rest of the Android world will depend on many different variables.