diff --git a/backend/supabase/migrations/20250607000000_fix_encrypted_config_column.sql b/backend/supabase/migrations/20250607000000_fix_encrypted_config_column.sql
index 46c95c40..4bab017b 100644
--- a/backend/supabase/migrations/20250607000000_fix_encrypted_config_column.sql
+++ b/backend/supabase/migrations/20250607000000_fix_encrypted_config_column.sql
@@ -3,11 +3,14 @@ BEGIN;
 -- Fix encrypted_config column type to store base64 strings properly
 -- Change from BYTEA to TEXT to avoid encoding issues
 
--- First, drop any existing data (since it's corrupted anyway)
-DELETE FROM user_mcp_credentials;
-
--- Change the column type from BYTEA to TEXT
-ALTER TABLE user_mcp_credentials 
-ALTER COLUMN encrypted_config TYPE TEXT;
+-- Only proceed if the table exists
+DO $$
+BEGIN
+    IF EXISTS (SELECT 1 FROM information_schema.tables WHERE table_name = 'user_mcp_credentials') THEN
+        DELETE FROM user_mcp_credentials;
+        ALTER TABLE user_mcp_credentials 
+        ALTER COLUMN encrypted_config TYPE TEXT;
+    END IF;
+END $$;
 
 COMMIT; 
\ No newline at end of file
diff --git a/backend/supabase/migrations/20250618000000_credential_profiles.sql b/backend/supabase/migrations/20250618000000_credential_profiles.sql
index 0ab0af2d..0a6f0d37 100644
--- a/backend/supabase/migrations/20250618000000_credential_profiles.sql
+++ b/backend/supabase/migrations/20250618000000_credential_profiles.sql
@@ -45,33 +45,39 @@ ADD COLUMN mcp_credential_mappings JSONB DEFAULT '{}';
 COMMENT ON COLUMN workflows.mcp_credential_mappings IS 
 'JSON mapping of MCP qualified names to credential profile IDs. Example: {"@smithery-ai/slack": "profile_id_123", "github": "profile_id_456"}';
 
-INSERT INTO user_mcp_credential_profiles (
-    account_id,
-    mcp_qualified_name,
-    profile_name,
-    display_name,
-    encrypted_config,
-    config_hash,
-    is_active,
-    is_default,
-    created_at,
-    updated_at,
-    last_used_at
-)
-SELECT 
-    account_id,
-    mcp_qualified_name,
-    'Default' as profile_name,
-    COALESCE(display_name, mcp_qualified_name) as display_name,
-    encrypted_config,
-    config_hash,
-    is_active,
-    true as is_default, -- Mark migrated credentials as default
-    created_at,
-    updated_at,
-    last_used_at
-FROM user_mcp_credentials
-WHERE is_active = true;
+-- Migrate existing credentials if the table exists
+DO $$
+BEGIN
+    IF EXISTS (SELECT 1 FROM information_schema.tables WHERE table_name = 'user_mcp_credentials') THEN
+        INSERT INTO user_mcp_credential_profiles (
+            account_id,
+            mcp_qualified_name,
+            profile_name,
+            display_name,
+            encrypted_config,
+            config_hash,
+            is_active,
+            is_default,
+            created_at,
+            updated_at,
+            last_used_at
+        )
+        SELECT 
+            account_id,
+            mcp_qualified_name,
+            'Default' as profile_name,
+            COALESCE(display_name, mcp_qualified_name) as display_name,
+            encrypted_config,
+            config_hash,
+            is_active,
+            true as is_default,
+            created_at,
+            updated_at,
+            last_used_at
+        FROM user_mcp_credentials
+        WHERE is_active = true;
+    END IF;
+END $$;
 
 CREATE OR REPLACE FUNCTION ensure_single_default_profile()
 RETURNS TRIGGER AS $$
diff --git a/backend/supabase/migrations/20250624065047_secure_credentials.sql b/backend/supabase/migrations/20250624065047_secure_credentials.sql
new file mode 100644
index 00000000..2494b6fb
--- /dev/null
+++ b/backend/supabase/migrations/20250624065047_secure_credentials.sql
@@ -0,0 +1,446 @@
+BEGIN;
+
+-- =====================================================
+-- SECURE MCP CREDENTIAL ARCHITECTURE MIGRATION
+-- =====================================================
+-- This migration implements a secure architecture where:
+-- 1. Agent templates contain MCP requirements (no credentials)
+-- 2. User credentials are stored encrypted separately
+-- 3. Agent instances combine templates with user credentials at runtime
+
+-- =====================================================
+-- 1. AGENT TEMPLATES TABLE
+-- =====================================================
+-- Stores marketplace agent templates without any credentials
+CREATE TABLE IF NOT EXISTS agent_templates (
+    template_id UUID PRIMARY KEY DEFAULT gen_random_uuid(),
+    creator_id UUID NOT NULL REFERENCES basejump.accounts(id) ON DELETE CASCADE,
+    name VARCHAR(255) NOT NULL,
+    description TEXT,
+    system_prompt TEXT NOT NULL,
+    mcp_requirements JSONB DEFAULT '[]'::jsonb, -- No credentials, just requirements
+    agentpress_tools JSONB DEFAULT '{}'::jsonb,
+    tags TEXT[] DEFAULT '{}',
+    is_public BOOLEAN DEFAULT FALSE,
+    marketplace_published_at TIMESTAMPTZ,
+    download_count INTEGER DEFAULT 0,
+    created_at TIMESTAMPTZ DEFAULT NOW(),
+    updated_at TIMESTAMPTZ DEFAULT NOW(),
+    avatar VARCHAR(10),
+    avatar_color VARCHAR(7),
+    metadata JSONB DEFAULT '{}'::jsonb
+);
+
+-- Indexes for agent_templates
+CREATE INDEX IF NOT EXISTS idx_agent_templates_creator_id ON agent_templates(creator_id);
+CREATE INDEX IF NOT EXISTS idx_agent_templates_is_public ON agent_templates(is_public);
+CREATE INDEX IF NOT EXISTS idx_agent_templates_marketplace_published_at ON agent_templates(marketplace_published_at);
+CREATE INDEX IF NOT EXISTS idx_agent_templates_download_count ON agent_templates(download_count);
+CREATE INDEX IF NOT EXISTS idx_agent_templates_tags ON agent_templates USING gin(tags);
+CREATE INDEX IF NOT EXISTS idx_agent_templates_created_at ON agent_templates(created_at);
+CREATE INDEX IF NOT EXISTS idx_agent_templates_metadata ON agent_templates USING gin(metadata);
+
+-- =====================================================
+-- 2. USER MCP CREDENTIALS TABLE
+-- =====================================================
+-- Stores encrypted MCP credentials per user
+CREATE TABLE IF NOT EXISTS user_mcp_credentials (
+    credential_id UUID PRIMARY KEY DEFAULT gen_random_uuid(),
+    account_id UUID NOT NULL REFERENCES basejump.accounts(id) ON DELETE CASCADE,
+    mcp_qualified_name VARCHAR(255) NOT NULL,
+    display_name VARCHAR(255) NOT NULL,
+    encrypted_config TEXT NOT NULL, -- Encrypted JSON config
+    config_hash VARCHAR(64) NOT NULL, -- SHA-256 hash for integrity checking
+    is_active BOOLEAN DEFAULT TRUE,
+    last_used_at TIMESTAMPTZ,
+    created_at TIMESTAMPTZ DEFAULT NOW(),
+    updated_at TIMESTAMPTZ DEFAULT NOW(),
+    
+    -- Ensure one credential per user per MCP
+    UNIQUE(account_id, mcp_qualified_name)
+);
+
+-- Indexes for user_mcp_credentials
+CREATE INDEX IF NOT EXISTS idx_user_mcp_credentials_account_id ON user_mcp_credentials(account_id);
+CREATE INDEX IF NOT EXISTS idx_user_mcp_credentials_mcp_name ON user_mcp_credentials(mcp_qualified_name);
+CREATE INDEX IF NOT EXISTS idx_user_mcp_credentials_is_active ON user_mcp_credentials(is_active);
+CREATE INDEX IF NOT EXISTS idx_user_mcp_credentials_last_used ON user_mcp_credentials(last_used_at);
+
+-- =====================================================
+-- 3. AGENT INSTANCES TABLE
+-- =====================================================
+-- Links templates with user credentials to create runnable agents
+CREATE TABLE IF NOT EXISTS agent_instances (
+    instance_id UUID PRIMARY KEY DEFAULT gen_random_uuid(),
+    template_id UUID REFERENCES agent_templates(template_id) ON DELETE CASCADE,
+    account_id UUID NOT NULL REFERENCES basejump.accounts(id) ON DELETE CASCADE,
+    name VARCHAR(255) NOT NULL,
+    description TEXT,
+    credential_mappings JSONB DEFAULT '{}'::jsonb, -- Maps MCP qualified_name to credential_id
+    custom_system_prompt TEXT, -- Optional override of template system prompt
+    is_active BOOLEAN DEFAULT TRUE,
+    is_default BOOLEAN DEFAULT FALSE,
+    created_at TIMESTAMPTZ DEFAULT NOW(),
+    updated_at TIMESTAMPTZ DEFAULT NOW(),
+    avatar VARCHAR(10),
+    avatar_color VARCHAR(7),
+    
+    -- For backward compatibility, allow instances without templates (existing agents)
+    CONSTRAINT check_template_or_legacy CHECK (
+        template_id IS NOT NULL OR 
+        (template_id IS NULL AND created_at < NOW()) -- Legacy agents
+    )
+);
+
+-- Indexes for agent_instances
+CREATE INDEX IF NOT EXISTS idx_agent_instances_template_id ON agent_instances(template_id);
+CREATE INDEX IF NOT EXISTS idx_agent_instances_account_id ON agent_instances(account_id);
+CREATE INDEX IF NOT EXISTS idx_agent_instances_is_active ON agent_instances(is_active);
+CREATE INDEX IF NOT EXISTS idx_agent_instances_is_default ON agent_instances(is_default);
+CREATE INDEX IF NOT EXISTS idx_agent_instances_created_at ON agent_instances(created_at);
+
+-- Ensure only one default agent per account
+CREATE UNIQUE INDEX IF NOT EXISTS idx_agent_instances_account_default 
+ON agent_instances(account_id, is_default) WHERE is_default = true;
+
+-- =====================================================
+-- 4. CREDENTIAL USAGE TRACKING
+-- =====================================================
+-- Track when and how credentials are used for auditing
+CREATE TABLE IF NOT EXISTS credential_usage_log (
+    log_id UUID PRIMARY KEY DEFAULT gen_random_uuid(),
+    credential_id UUID NOT NULL REFERENCES user_mcp_credentials(credential_id) ON DELETE CASCADE,
+    instance_id UUID REFERENCES agent_instances(instance_id) ON DELETE SET NULL,
+    action VARCHAR(50) NOT NULL, -- 'connect', 'tool_call', 'disconnect'
+    success BOOLEAN NOT NULL,
+    error_message TEXT,
+    metadata JSONB DEFAULT '{}'::jsonb,
+    created_at TIMESTAMPTZ DEFAULT NOW()
+);
+
+-- Indexes for credential_usage_log
+CREATE INDEX IF NOT EXISTS idx_credential_usage_log_credential_id ON credential_usage_log(credential_id);
+CREATE INDEX IF NOT EXISTS idx_credential_usage_log_instance_id ON credential_usage_log(instance_id);
+CREATE INDEX IF NOT EXISTS idx_credential_usage_log_created_at ON credential_usage_log(created_at);
+CREATE INDEX IF NOT EXISTS idx_credential_usage_log_action ON credential_usage_log(action);
+
+-- =====================================================
+-- 5. UPDATE TRIGGERS
+-- =====================================================
+-- Update triggers for updated_at timestamps
+CREATE OR REPLACE FUNCTION update_updated_at_timestamp()
+RETURNS TRIGGER AS $$
+BEGIN
+    NEW.updated_at = NOW();
+    RETURN NEW;
+END;
+$$ LANGUAGE plpgsql;
+
+-- Apply triggers
+DROP TRIGGER IF EXISTS trigger_agent_templates_updated_at ON agent_templates;
+CREATE TRIGGER trigger_agent_templates_updated_at
+    BEFORE UPDATE ON agent_templates
+    FOR EACH ROW
+    EXECUTE FUNCTION update_updated_at_timestamp();
+
+DROP TRIGGER IF EXISTS trigger_user_mcp_credentials_updated_at ON user_mcp_credentials;
+CREATE TRIGGER trigger_user_mcp_credentials_updated_at
+    BEFORE UPDATE ON user_mcp_credentials
+    FOR EACH ROW
+    EXECUTE FUNCTION update_updated_at_timestamp();
+
+DROP TRIGGER IF EXISTS trigger_agent_instances_updated_at ON agent_instances;
+CREATE TRIGGER trigger_agent_instances_updated_at
+    BEFORE UPDATE ON agent_instances
+    FOR EACH ROW
+    EXECUTE FUNCTION update_updated_at_timestamp();
+
+-- =====================================================
+-- 6. ROW LEVEL SECURITY POLICIES
+-- =====================================================
+
+-- Enable RLS on all new tables
+ALTER TABLE agent_templates ENABLE ROW LEVEL SECURITY;
+ALTER TABLE user_mcp_credentials ENABLE ROW LEVEL SECURITY;
+ALTER TABLE agent_instances ENABLE ROW LEVEL SECURITY;
+ALTER TABLE credential_usage_log ENABLE ROW LEVEL SECURITY;
+
+-- Agent Templates Policies
+DROP POLICY IF EXISTS agent_templates_select_policy ON agent_templates;
+CREATE POLICY agent_templates_select_policy ON agent_templates
+    FOR SELECT
+    USING (
+        is_public = true OR 
+        basejump.has_role_on_account(creator_id)
+    );
+
+DROP POLICY IF EXISTS agent_templates_insert_policy ON agent_templates;
+CREATE POLICY agent_templates_insert_policy ON agent_templates
+    FOR INSERT
+    WITH CHECK (basejump.has_role_on_account(creator_id, 'owner'));
+
+DROP POLICY IF EXISTS agent_templates_update_policy ON agent_templates;
+CREATE POLICY agent_templates_update_policy ON agent_templates
+    FOR UPDATE
+    USING (basejump.has_role_on_account(creator_id, 'owner'));
+
+DROP POLICY IF EXISTS agent_templates_delete_policy ON agent_templates;
+CREATE POLICY agent_templates_delete_policy ON agent_templates
+    FOR DELETE
+    USING (basejump.has_role_on_account(creator_id, 'owner'));
+
+-- User MCP Credentials Policies (users can only access their own credentials)
+DROP POLICY IF EXISTS user_mcp_credentials_select_policy ON user_mcp_credentials;
+CREATE POLICY user_mcp_credentials_select_policy ON user_mcp_credentials
+    FOR SELECT
+    USING (basejump.has_role_on_account(account_id));
+
+DROP POLICY IF EXISTS user_mcp_credentials_insert_policy ON user_mcp_credentials;
+CREATE POLICY user_mcp_credentials_insert_policy ON user_mcp_credentials
+    FOR INSERT
+    WITH CHECK (basejump.has_role_on_account(account_id, 'owner'));
+
+DROP POLICY IF EXISTS user_mcp_credentials_update_policy ON user_mcp_credentials;
+CREATE POLICY user_mcp_credentials_update_policy ON user_mcp_credentials
+    FOR UPDATE
+    USING (basejump.has_role_on_account(account_id, 'owner'));
+
+DROP POLICY IF EXISTS user_mcp_credentials_delete_policy ON user_mcp_credentials;
+CREATE POLICY user_mcp_credentials_delete_policy ON user_mcp_credentials
+    FOR DELETE
+    USING (basejump.has_role_on_account(account_id, 'owner'));
+
+-- Agent Instances Policies
+DROP POLICY IF EXISTS agent_instances_select_policy ON agent_instances;
+CREATE POLICY agent_instances_select_policy ON agent_instances
+    FOR SELECT
+    USING (basejump.has_role_on_account(account_id));
+
+DROP POLICY IF EXISTS agent_instances_insert_policy ON agent_instances;
+CREATE POLICY agent_instances_insert_policy ON agent_instances
+    FOR INSERT
+    WITH CHECK (basejump.has_role_on_account(account_id, 'owner'));
+
+DROP POLICY IF EXISTS agent_instances_update_policy ON agent_instances;
+CREATE POLICY agent_instances_update_policy ON agent_instances
+    FOR UPDATE
+    USING (basejump.has_role_on_account(account_id, 'owner'));
+
+DROP POLICY IF EXISTS agent_instances_delete_policy ON agent_instances;
+CREATE POLICY agent_instances_delete_policy ON agent_instances
+    FOR DELETE
+    USING (basejump.has_role_on_account(account_id, 'owner') AND is_default = false);
+
+-- Credential Usage Log Policies
+DROP POLICY IF EXISTS credential_usage_log_select_policy ON credential_usage_log;
+CREATE POLICY credential_usage_log_select_policy ON credential_usage_log
+    FOR SELECT
+    USING (
+        EXISTS (
+            SELECT 1 FROM user_mcp_credentials 
+            WHERE user_mcp_credentials.credential_id = credential_usage_log.credential_id
+            AND basejump.has_role_on_account(user_mcp_credentials.account_id)
+        )
+    );
+
+DROP POLICY IF EXISTS credential_usage_log_insert_policy ON credential_usage_log;
+CREATE POLICY credential_usage_log_insert_policy ON credential_usage_log
+    FOR INSERT
+    WITH CHECK (
+        EXISTS (
+            SELECT 1 FROM user_mcp_credentials 
+            WHERE user_mcp_credentials.credential_id = credential_usage_log.credential_id
+            AND basejump.has_role_on_account(user_mcp_credentials.account_id)
+        )
+    );
+
+-- =====================================================
+-- 7. HELPER FUNCTIONS
+-- =====================================================
+
+-- Function to create agent template from existing agent
+CREATE OR REPLACE FUNCTION create_template_from_agent(
+    p_agent_id UUID,
+    p_creator_id UUID
+)
+RETURNS UUID
+SECURITY DEFINER
+LANGUAGE plpgsql
+AS $$
+DECLARE
+    v_template_id UUID;
+    v_agent agents%ROWTYPE;
+    v_mcp_requirements JSONB := '[]'::jsonb;
+    v_mcp_config JSONB;
+BEGIN
+    -- Get the agent
+    SELECT * INTO v_agent FROM agents WHERE agent_id = p_agent_id;
+    
+    IF NOT FOUND THEN
+        RAISE EXCEPTION 'Agent not found';
+    END IF;
+    
+    -- Check ownership
+    IF NOT basejump.has_role_on_account(v_agent.account_id, 'owner') THEN
+        RAISE EXCEPTION 'Access denied';
+    END IF;
+    
+    -- Extract MCP requirements (remove credentials)
+    FOR v_mcp_config IN SELECT * FROM jsonb_array_elements(v_agent.configured_mcps)
+    LOOP
+        v_mcp_requirements := v_mcp_requirements || jsonb_build_object(
+            'qualifiedName', v_mcp_config->>'qualifiedName',
+            'name', v_mcp_config->>'name',
+            'enabledTools', v_mcp_config->'enabledTools',
+            'requiredConfig', (
+                SELECT jsonb_agg(key) 
+                FROM jsonb_object_keys(v_mcp_config->'config') AS key
+            )
+        );
+    END LOOP;
+    
+    -- Create template
+    INSERT INTO agent_templates (
+        creator_id,
+        name,
+        description,
+        system_prompt,
+        mcp_requirements,
+        agentpress_tools,
+        tags,
+        avatar,
+        avatar_color
+    ) VALUES (
+        p_creator_id,
+        v_agent.name,
+        v_agent.description,
+        v_agent.system_prompt,
+        v_mcp_requirements,
+        v_agent.agentpress_tools,
+        v_agent.tags,
+        v_agent.avatar,
+        v_agent.avatar_color
+    ) RETURNING template_id INTO v_template_id;
+    
+    RETURN v_template_id;
+END;
+$$;
+
+-- Function to install template as agent instance
+CREATE OR REPLACE FUNCTION install_template_as_instance(
+    p_template_id UUID,
+    p_account_id UUID,
+    p_instance_name VARCHAR(255) DEFAULT NULL
+)
+RETURNS UUID
+SECURITY DEFINER
+LANGUAGE plpgsql
+AS $$
+DECLARE
+    v_instance_id UUID;
+    v_template agent_templates%ROWTYPE;
+    v_instance_name VARCHAR(255);
+    v_credential_mappings JSONB := '{}'::jsonb;
+    v_mcp_req JSONB;
+    v_credential_id UUID;
+BEGIN
+    -- Get template
+    SELECT * INTO v_template FROM agent_templates WHERE template_id = p_template_id;
+    
+    IF NOT FOUND THEN
+        RAISE EXCEPTION 'Template not found';
+    END IF;
+    
+    -- Check if template is public or user owns it
+    IF NOT (v_template.is_public OR basejump.has_role_on_account(v_template.creator_id)) THEN
+        RAISE EXCEPTION 'Access denied to template';
+    END IF;
+    
+    -- Set instance name
+    v_instance_name := COALESCE(p_instance_name, v_template.name || ' (from marketplace)');
+    
+    -- Build credential mappings
+    FOR v_mcp_req IN SELECT * FROM jsonb_array_elements(v_template.mcp_requirements)
+    LOOP
+        -- Find user's credential for this MCP
+        SELECT credential_id INTO v_credential_id
+        FROM user_mcp_credentials
+        WHERE account_id = p_account_id 
+        AND mcp_qualified_name = (v_mcp_req->>'qualifiedName')
+        AND is_active = true;
+        
+        IF v_credential_id IS NOT NULL THEN
+            v_credential_mappings := v_credential_mappings || 
+                jsonb_build_object(v_mcp_req->>'qualifiedName', v_credential_id);
+        END IF;
+    END LOOP;
+    
+    -- Create agent instance
+    INSERT INTO agent_instances (
+        template_id,
+        account_id,
+        name,
+        description,
+        credential_mappings,
+        avatar,
+        avatar_color
+    ) VALUES (
+        p_template_id,
+        p_account_id,
+        v_instance_name,
+        v_template.description,
+        v_credential_mappings,
+        v_template.avatar,
+        v_template.avatar_color
+    ) RETURNING instance_id INTO v_instance_id;
+    
+    -- Update template download count
+    UPDATE agent_templates 
+    SET download_count = download_count + 1 
+    WHERE template_id = p_template_id;
+    
+    RETURN v_instance_id;
+END;
+$$;
+
+-- Function to get missing credentials for template
+CREATE OR REPLACE FUNCTION get_missing_credentials_for_template(
+    p_template_id UUID,
+    p_account_id UUID
+)
+RETURNS TABLE (
+    qualified_name VARCHAR(255),
+    display_name VARCHAR(255),
+    required_config TEXT[]
+)
+SECURITY DEFINER
+LANGUAGE plpgsql
+AS $$
+BEGIN
+    RETURN QUERY
+    SELECT 
+        (mcp_req->>'qualifiedName')::VARCHAR(255) as qualified_name,
+        (mcp_req->>'name')::VARCHAR(255) as display_name,
+        ARRAY(SELECT jsonb_array_elements_text(mcp_req->'requiredConfig')) as required_config
+    FROM agent_templates t,
+         jsonb_array_elements(t.mcp_requirements) as mcp_req
+    WHERE t.template_id = p_template_id
+    AND NOT EXISTS (
+        SELECT 1 FROM user_mcp_credentials c
+        WHERE c.account_id = p_account_id
+        AND c.mcp_qualified_name = (mcp_req->>'qualifiedName')
+        AND c.is_active = true
+    );
+END;
+$$;
+
+GRANT EXECUTE ON FUNCTION create_template_from_agent(UUID, UUID) TO authenticated;
+GRANT EXECUTE ON FUNCTION install_template_as_instance(UUID, UUID, VARCHAR) TO authenticated;
+GRANT EXECUTE ON FUNCTION get_missing_credentials_for_template(UUID, UUID) TO authenticated;
+
+GRANT ALL PRIVILEGES ON TABLE agent_templates TO authenticated, service_role;
+GRANT ALL PRIVILEGES ON TABLE user_mcp_credentials TO authenticated, service_role;
+GRANT ALL PRIVILEGES ON TABLE agent_instances TO authenticated, service_role;
+GRANT ALL PRIVILEGES ON TABLE credential_usage_log TO authenticated, service_role;
+
+COMMIT; 
\ No newline at end of file