Google always keep privacy at the top. You must have seen some NEWS that it keeps on removing Apps from Play store. This is because these apps do not comply with privacy norms.
This will work the same as we have on Google Pay. Google rolled out an update to Google Services. This will allow users to register their fingerprint in various services. Surely, this will first in Pixel Devices after we can see it other devices running on Android 7 Nougat.
The authentication method is built on the FIDO2 standards, W3C WebAuthn and FIDO CTAP. Simply, this is a better way for biometric authentication. By FIDO2, we can have authentication not on Apps but on WEB as well.