This paper advocates virtualization technology as a methodology to solve the security problems that an organization has to face when contributes with its resources to a grid. In particular, this technology makes it possible to increase the overall security of any system by inserting a set of controls into the code that implements one virtual machine. In this way, a secure cooperation among virtual machine can be implemented. This generalizes the current approach that exploits virtualization only for the confinement of alternative programming environments resulting from the partitioning of a physical machine into a set of non-cooperating virtual machines. The ability to support cooperation among virtual machines may be used to define networks of cooperating virtual machines to execute distributed applications. The paper describes a general purpose approach to security based upon virtual networks of cooperating virtual machines and applies it to one of the most challenging problems: that of securing a grid environment