Custodians Rush to Quantum Defense as Threat Looms in Decades
A recent influx of funding for Bitcoin quantum defense has sparked debate about the real danger posed by quantum computers. In July, Galaxy launched a $5 million initiative to fund developers building post-quantum tools, while nine major names including BlackRock and Coinbase pledged $15 million over three years through the Bitcoin Security Consortium.
The consortium's research focuses on reviewing and integrating post-quantum signatures into Bitcoin's code, rather than directly addressing the protocol. However, some experts argue that this approach may not be enough to mitigate the threat, with Benchmark analyst Mark Palmer estimating that capable quantum machines are at least 10 to 20 years away.
Despite this uncertainty, several major custodians are already shipping products to address the issue. Coinbase is building a post-quantum version of its CoreKMS system, which splits private keys into encrypted shares held across separate machines, while BitGo has launched a Quantum Risk Score to rate wallet exposure.
The push for quantum defense is also driven by regulatory requirements. The National Institute of Standards and Technology (NIST) plans to bar federal use of Bitcoin's encryption strength after 2035, with similar deadlines set by an executive order in June 2026. Some experts believe that this timeline may be too aggressive, given the current state of quantum hardware.
Companies such as Trezor are marketing their products as 'quantum-ready', although it remains unclear whether these measures will be effective against a powerful quantum computer.