Coinbase Prepares for Post-Quantum Bitcoin Custody
Coinbase is developing a post-quantum Bitcoin custody system to protect its $250 billion in institutional assets. The system will support any new signature scheme adopted by Bitcoin or another blockchain.
According to Coinbase Chief Cryptographer Yehuda Lindell, the exchange wants to remain usable regardless of which post-quantum signature schemes blockchains eventually select. Different blockchain communities may adopt different schemes instead of a single standard.
Coinbase is preparing for several possible outcomes rather than building its system around one candidate scheme. This includes exploring a backup design built around programmable Hardware Security Modules (HSMs) to reduce dependence on Multi-Party Computation (MPC) compatibility.
The HSM architecture would contain the complete key within the protected device, allowing Coinbase to work with signature schemes that cannot be divided through conventional MPC. This approach would not require Coinbase to abandon MPC for signature schemes that support it.