Coinbase has started preparing its custody systems and infrastructure for a future where powerful quantum computers could break the cryptography that secures Bitcoin, Ethereum, and other blockchains. In a blog post on July 23, the company’s Chief Information Security Officer Jeff Lunglhofer explained that while no one knows exactly when such a quantum computer will be built, preparation needs to start now.
It’s not that quantum computers are a current threat. But upgrading global blockchain systems and moving millions of users to new cryptographic methods could take years. That makes early action essential.
Industry Standards Already Shifting
Coinbase’s efforts align with broader moves in cybersecurity. In June 2026, the U.S. National Institute of Standards and Technology (NIST) released draft updates to federal post-quantum cryptography standards. These incorporate new quantum-resistant algorithms for identity verification and authentication. The updates are meant to help federal agencies and industry adopt quantum-resistant tech while maintaining interoperability.
Coinbase Builds Quantum-Safe Custody System
The exchange is developing PQ-CoreKMS, a post-quantum version of its key management system. That system protects around 99.9% of assets held in custody. The current CoreKMS uses multiparty computation, which distributes control of private keys so no single party can reconstruct a full key.
Within the next year, Coinbase plans to introduce an automated signing system that combines secure enclaves, secret sharing, and threshold cryptography. This should support multiple post-quantum signature algorithms as blockchain networks begin adopting them. Over the following two to three years, researchers intend to expand MPC capabilities further to accommodate lattice-based and other post-quantum signing schemes.
In parallel, Coinbase is cataloging all cryptography used across its infrastructure, including systems that protect customer data and authentication. Each system will be ranked by importance, exposure, and migration difficulty.
Bitcoin Security Push Requires Industry Cooperation
Coinbase will co-host a working session with Stanford in August for Bitcoin Core developers, researchers, and cryptographers. They’ll examine potential migration strategies and technical challenges involved in moving bitcoin to quantum-resistant security.
The exchange is also a founding member of the Bitcoin Security Consortium, alongside BlackRock, Fidelity Digital Assets, Block, Blockstream, and Strategy. The consortium launched with a $15 million initiative to support open-source developers researching Bitcoin’s long-term security. Coinbase will also donate to developers working on quantum-related security and assign its engineers to open-source proposals like BIP-360.
No single company can solve this alone. The industry needs researchers, developers, protocols, and companies all moving in the same direction. The quantum future is coming, and the time to start preparing is now.
