Coinbase is taking steps to prepare its infrastructure for a future where quantum computers could break the cryptography that secures Bitcoin, Ethereum, and other blockchain networks. The exchange’s chief information security officer, Jeff Lunglhofer, laid out the company’s stance in a recent blog post. He noted that a large-scale quantum computer capable of breaking current cryptography will eventually be built, though no one knows exactly when. The work to prepare needs to start now.
The warning does not mean quantum computers can currently break blockchain security. Instead, Coinbase argues that upgrading global systems and migrating millions of users to new cryptographic methods could take years. Early preparation is essential. The company’s independent advisory board on quantum computing and blockchain has high confidence that a fault-tolerant quantum computer will eventually be developed.
Industry Standards Are Already Shifting
Coinbase’s efforts align with broader cybersecurity work. In June 2026, the U.S. National Institute of Standards and Technology (NIST) released draft updates to federal post-quantum cryptography standards. These updates incorporate newly standardized quantum-resistant algorithms for identity verification and authentication. NIST’s revisions aim to help federal agencies and industry adopt quantum-resistant technologies while maintaining interoperability.
Coinbase Builds Quantum-Safe Custody System
Coinbase is developing PQ-CoreKMS, a post-quantum version of its key management system. This system protects approximately 99.9% of the assets the company holds in custody. The existing CoreKMS relies on multiparty computation (MPC), which distributes control of private keys so no single party can reconstruct a customer’s full key. Over the next year, Coinbase plans to introduce an automated signing system that combines secure enclaves, secret sharing, and threshold cryptography. This will enable support for 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, the exchange is cataloging the cryptography used across its infrastructure and ranking each system 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. The group will 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 companies like BlackRock, Fidelity Digital Assets, Block, Blockstream, and Strategy. The consortium launched with a $15 million industry initiative to support open-source developers researching Bitcoin’s long-term security. Coinbase said it will also donate to developers working on quantum-related security and assign its engineers to open-source efforts, including proposals such as BIP-360. Lunglhofer emphasized that no single company can solve this alone; the only way is through cooperation among researchers, developers, protocols, and companies.
