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Coinbase prepares for post-quantum future with $15 million funding, 7 million BTC at risk from quantum attacks, and a new Bitcoin Security Consortium to
Coinbase is building a post-quantum custody system to protect its users' assets from potential quantum computer attacks, with a threat level that could affect approximately 7 million BTC, or about one-third of the total supply [3]. The company is taking proactive measures to address the risk, as a sufficiently powerful quantum computer could theoretically break Bitcoin's current cryptography, exposing funds.
| At a glance | |
|---|---|
| Price | Not specified |
| 24h % move | Not specified |
| Key level | 7 million BTC at risk |
| Catalyst | Quantum computer threat |
The Bitcoin Security Consortium, founded by nine companies including Coinbase, BlackRock, and Fidelity Digital Assets, will provide $15 million in funding over three years to support Bitcoin security research, including post-quantum cryptography [2]. This initiative aims to address the potential threat of quantum computers to Bitcoin's security, as experts warn that proactive measures are essential to safeguard the ecosystem before "cryptographically relevant" quantum systems emerge. The consortium will not push for specific changes to Bitcoin's code or speak on behalf of its decentralized developer community.
According to Coinbase's independent Quantum Advisory Council, approximately 1.7 million BTC reside in older Pay-to-Public-Key (P2PK) addresses, where public keys have been openly visible since the network's early days [3]. When combined with address reuse across other address types, the total quantum-vulnerable Bitcoin climbs to roughly 7 million. This exposure creates a dual challenge for the Bitcoin ecosystem: technical migration to post-quantum cryptography and difficult governance decisions about "abandoned" coins.
The real significance of Coinbase's post-quantum custody system and the Bitcoin Security Consortium's funding initiative lies in their proactive approach to addressing the potential threat of quantum computers to Bitcoin's security. As the Bitcoin ecosystem continues to evolve, it is crucial to monitor the development of post-quantum cryptography and its potential impact on the cryptocurrency's price and security.
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Coinbase was founded in June 2012 by Brian Armstrong and Fred Ehrsam. The company launched its initial services to buy and sell bitcoins through bank transfers in October 2012.
Coinbase has over 100 million users as of 2024. The company serves these users across more than 100 countries.
Coinbase does not have a physical headquarters as of 2025. The company shifted to a remote-first work model in May 2020 during the COVID-19 pandemic.
Coinbase Ventures is an early-stage venture fund formed by Coinbase in April 2018. The fund focuses on making investments into blockchain- and cryptocurrency-related companies.