The embodiments herein provide a secure platform and application virtualization system comprising a universal secure platform virtualization system (USPVS) platform device, a cloud environment and a USPVS portable key device. The USPVS platform is an external computing device having a specific set of protocols to interact with a computing device. The USPVS platform is connected to a plurality of virtual as well as physical cloud environment. The USPVS portable key device is connected to the USPVS platform. The USPVS portable key device holds an encryption key with a Unique ID. The USPVS portable key device comprises a Universal Serial Bus port for connection of a tertiary external device. The USPVS platform has a decryption key for the encryption key of the USPVS portable device.