Key facts
- Quantum computing security concerns could impact Bitcoin's institutional investment case.
- Meaningful progress toward quantum resistance for Bitcoin is needed by 2028.
- Ripple secured a national trust bank charter from US regulators.
- USDC now holds 56% of euro-denominated stablecoin trading volume.
- VanEck's new ETF targets a 2% Bitcoin allocation.
Concerns over quantum computing's potential to compromise Bitcoin's security are growing, with experts warning that the economic implications could surface before the technology poses a direct threat to the network. Muneeb Ali, founder of Stacks, believes these quantum risks are already deterring institutional investment, despite the significant assets held in US spot Bitcoin ETFs. He estimates Bitcoin has only a few years to transition to quantum-resistant security, a process complicated by the network's history of slow upgrades. The uncertainty alone could undermine investor confidence and impact the broader crypto market.
In other developments, Ripple has received final approval from the US Office of the Comptroller of the Currency to establish a national trust bank, which will manage reserves for its RLUSD stablecoin and provide digital asset custody. Meanwhile, Circle's USDC has overtaken Tether's USDt in euro trading volume, now holding 56% of the market, following the implementation of the EU's Markets in Crypto-Assets Regulation (MiCA). Asset manager VanEck has also launched a new actively managed ETF, the Wealth Builder ETF, which includes a small allocation to Bitcoin.