Ethereum's Quantum Upgrade Puts Banks on a Tight Deadline
Ethereum's plan to upgrade its network to be resistant to quantum computers has put regulated banks on a tight deadline, with some experts warning that the transition could create problems years before any real threat materializes.
According to Thomas Brunner, Sygnum Bank's Head of Custody and Staking, banks will need to start their inventory of post-quantum keys as early as 2027 in order to be ready for the upgrade by 2029. This involves mapping every key, dependency, vendor, and control path, which can take anywhere from six months to a year.
Brunner also noted that banks will need to redesign their key ceremonies and dual-control procedures, obtain internal risk approval, undergo external audit, and potentially face supervisory review. He emphasized that the timeline is critical and that arriving late could result in a bank registering alongside other latecomers and losing control over its place in the queue.
The Ethereum team has proposed a validator-key registry to help spread out the transition period, but experts warn that a last-minute rush to register could overload the queue and leave validators unable to sign once BLS is deprecated.