Preparing for quantum computing needs collaboration across protocols, researchers and custodians.
Coinbase has started to future-proof its crypto infrastructure against the impending threat of quantum computing.
Quantum computing uses qubits that allow many calculations to be performed at the same time, which threatens blockchain security by potentially cracking public-key cryptography and exposing private keys.
The cryptocurrency exchange said while quantum computers capable of breaking current cryptography are not an immediate threat, the uncertainty around when they will arrive means preparation needs to begin now.
“A large-scale quantum computer capable of breaking current cryptography will eventually be built. No one knows exactly when. But the work to prepare needs to start now, not when it’s urgent,” Coinbase said.
The exchange has launched several initiatives focused on quantum readiness, including upgrading its key management infrastructure to support post-quantum cryptography.
According to Coinbase, its existing CoreKMS system protects around 99.9% of the assets it custodies, using multi-party computation technology to ensure private keys are never reconstructed by a single party.
In order to be ready for future threats, the company is currently developing PQ-CoreKMS, a post-quantum version of the system.
This latest version follows research undertaken by an Independent Advisory Board on Quantum Computing and Blockchain, which the exchange established in January 2026 to explore the potential risks posed by quantum technology.
Brian Armstrong, Co-founder and CEO of Coinbase, said at the time: `’Quantum computers could have implications for blockchain/crypto. It’s important we’re thinking these through and preparing where necessary.
“We are honoured to bring together some of the most distinguished researchers in quantum computing, cryptography, consensus, and blockchain systems to ensure this is being properly considered.”
People on the board include Professor Scott Aaronson, a world-leading quantum computing theorist; Professor Dan Boneh, a foundational figure in modern cryptography; Ethereum researcher Justin Drake; EigenLayer founder Professor Sreeram Kannan; secure multiparty computation expert Professor Yehuda Lindell; and distributed systems specialist Professor Dahlia Malkhi.
The board stated that they are highly confident that a fault-tolerant quantum computer will eventually be built, though there are already standards in place to help build protective solutions.
However, the exchange believes the biggest challenge will be migrating systems without weakening existing security.
How Coinbase is preparing Bitcoin for a quantum future
In addition to readying its own infrastructure, Coinbase stressed that collaboration across the wider blockchain ecosystem will be needed to address the challenge.
The company will co-host working sessions with Bitcoin developers, cryptographers and researchers, as well as Stanford, to discuss potential migration strategies for the network.
Bitcoin’s decentralised structure means any significant security upgrade requires coordination across developers, companies and users, making preparation a lot more difficult compared to migration in traditional finance.
The exchange has also become a founding member of the Bitcoin Security Consortium, where it will work with companies such as BlackRock, Fidelity Digital Assets, Block and Blockstream.
Through the initiative, Coinbase will provide funding for developers working on quantum-related Bitcoin security proposals and contribute engineering resources to open-source efforts.
“No one company can solve this alone. The only way through is together: researchers, developers, protocols, and companies all moving in the same direction,” said Coinbase.
