Coinbase Called for Starting Preparations to Protect Bitcoin From Quantum Threats

• Coinbase has presented proposals to prepare bitcoin for potential quantum computer attacks.
• The company urged the industry to begin migrating to post-quantum cryptography before a real threat emerges.
• Special attention is given to protecting legacy wallets, digital signatures, and maintaining access to funds.

Crypto exchange Coinbase presented technical recommendations for preparing Bitcoin for potential threats from quantum computers. The company believes the transition to new cryptographic standards will take several years, so the work needs to start now.

In a piece published on October 13, 2026, Coinbase noted that securing the network will require not only the adoption of quantum-resistant digital signatures, but also a comprehensive infrastructure upgrade. It should take into account the blockchain’s limited throughput, compatibility with existing wallets, and the needs of institutional participants.

According to the company, it holds about 5% of all existing bitcoin in custody. Coinbase is already preparing its own infrastructure for the post-quantum era and is working with Bitcoin developers, researchers, and members of the Bitcoin Security Consortium.

What Solutions Does Coinbase Propose?

One of the exchange’s priority areas is the development of mechanisms that allow new digital signature algorithms to be rolled out gradually without a full redesign of the network architecture.

In particular, Coinbase proposed considering the following approaches:

• using P2MR (BIP-360) and P2TRv2 solutions, which provide a path to introducing new cryptographic algorithms
• a gradual transition to hybrid mechanisms that allow transactions to be authorized with both traditional and quantum-resistant signatures
• evaluating the ML-DSA, SLH-DSA, FN-DSA, and SHRINCS algorithms, taking into account signature size, verification speed, and network load
• ensuring new standards are compatible with hardware wallets, institutional custody systems, and multi-party computation (MPC) technologies
• developing mechanisms to protect the funds of users who do not manage to migrate to the new standards in time

A separate challenge remains the fate of long-dormant wallets, including those dating back to the Satoshi Nakamoto era. Some of them use legacy formats that reveal public keys, potentially leaving funds vulnerable to quantum attacks.

Coinbase proposed discussing possible mechanisms for recovering and protecting such assets separately. The company stressed that any relevant solutions must rule out the possibility of their use by malicious actors.

At the same time, developing mechanisms for legacy wallets should not delay the rollout of post-quantum digital signatures.

The exchange also pointed to the risks of algorithms that require maintaining signature state. Errors when updating it or reusing it can create additional vulnerabilities. That is why Coinbase supports keeping alternative solutions that do not require managing such state.

Company representatives acknowledged that there may be no universal mechanism capable of simultaneously meeting all of the network’s technical requirements and users’ needs.

At the same time, Coinbase expects that bitcoin will retain its status as one of the most reliable cryptocurrencies even after sufficiently powerful quantum computers emerge. 

Earlier, Coinbase’s advisory council warned about the need for blockchains to transition to post-quantum cryptography by 2035. 

In a separate study, CoinShares experts estimated the potential scale of the threat to bitcoin. 

In addition, StarkWare developers demonstrated a quantum-resistant transaction without changing the network protocol.

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