Key facts
- Coinbase is developing post-quantum custody safeguards for institutional assets.
- The safeguards are designed to protect against quantum computing threats to Bitcoin.
- Coinbase custodies approximately $250 billion in institutional assets, including for BlackRock.
- The company's strategy involves supporting various potential post-quantum signature schemes.
- A fallback architecture using Hardware Security Modules (HSMs) is being explored.
- Traditional MPC may not be compatible with all post-quantum signature schemes.
Coinbase is developing post-quantum custody safeguards to protect the approximately $250 billion in institutional digital assets it holds, including for BlackRock. The initiative aims to address potential threats from quantum computers to Bitcoin's current security architecture.
Yehuda Lindell, Head of Cryptography at Coinbase, explained that the company's approach is designed to support various potential post-quantum signature schemes that Bitcoin might adopt. Traditional Multi-Party Computation (MPC), which splits private key shares across multiple parties, may not be compatible with all quantum-resistant signature schemes, such as hash-based signatures, due to their structural differences.
To mitigate this, Coinbase is exploring a fallback architecture that combines post-quantum threshold decryption with programmable Hardware Security Modules (HSMs). While a single HSM holding a complete key is theoretically less secure than pure MPC, Lindell expressed confidence in the physical and code-upload controls of HSMs. This strategy allows Coinbase to remain adaptable to Bitcoin's future signature standards.
Coinbase co-founded the Bitcoin Security Consortium in July 2026 with firms including BlackRock, Strategy, Fidelity, ARK Invest, Block, Blockstream, Anchorage, and Galaxy. The consortium pledged $15 million over three years for open-source Bitcoin security work, with quantum threats as a top priority. The urgency is heightened by US executive orders on quantum risk and migration deadlines pointing toward 2028-2031, while other blockchains like Ethereum are targeting quantum resistance by December 2029.