BlackRock and Coinbase back $15M push for quantum proof Bitcoin
Nine Bitcoin firms launched a consortium pledging $15 million over three years for security research, including quantum-resistant cryptography.
By Sofia Marchetti · Columnist
· 3 min read
BlackRock, Coinbase, Strategy and six other Bitcoin-focused firms have launched a $15 million effort tied to quantum proof Bitcoin research, a sign that major institutional holders want security work funded before the risk becomes urgent. For everyday Bitcoin investors, the point is straightforward: the network’s long-term value depends in part on whether its cryptography can keep up with future computing power.
The new group, called the Bitcoin Security Consortium, includes BlackRock, Coinbase, Strategy, Anchorage Digital, ARK Invest, Block, Blockstream, Fidelity Digital Assets and Galaxy. The firms said they are committing a combined $15 million over three years to support Bitcoin security research.
Mike Schmidt, executive director of Brink, will coordinate the consortium’s day-to-day work as a volunteer, according to the announcement. Brink is a nonprofit that funds open-source Bitcoin developers.
The money will not sit in one shared pot. Each member company will choose which developers, researchers or organizations to support with its own funds. The consortium also said it will not advocate for a particular Bitcoin code change or claim to represent Bitcoin’s decentralized developer community.
What is quantum proof Bitcoin?
Quantum proof Bitcoin refers to research and upgrades meant to protect Bitcoin from future quantum computers. Bitcoin today uses elliptic curve cryptography, a math-based system that lets the network verify a wallet owner approved a transaction without exposing the wallet’s private key.
The concern is that a powerful enough quantum computer could, in theory, calculate a private key from a public key. If that became practical, funds in certain exposed addresses could be at risk.
Post-quantum cryptography is the broad name for newer mathematical systems designed to stay secure even if quantum computers can break older cryptographic methods. That is the technical area the consortium says it wants to help fund.
Why are Bitcoin firms funding this now?
The risk is not described as immediate, but the timeline matters because Bitcoin upgrades can take years. Any shift to quantum-resistant signatures would need research, debate, agreement and broad deployment across wallets, exchanges and hardware devices.
ARK Invest estimated earlier this year that about 35% of Bitcoin’s total supply is already held in addresses that may be vulnerable to a future quantum attack. Researchers at Project Eleven have said “Q-Day,” the point when a quantum computer could realistically crack Bitcoin’s cryptography, could arrive as early as 2029.
Strategy CEO Phong Le said the company has an incentive as a long-term Bitcoin holder to help keep the network secure over generations, and described funding security researchers as a way to contribute to that goal.
Galaxy also made a separate move before the consortium announcement, unveiling a $5 million developer grant program for quantum-resistant Bitcoin solutions two days earlier.
For retail investors, the consortium does not mean Bitcoin is changing today. It means some of the largest companies tied to Bitcoin are putting money behind research that could shape how the network protects assets if quantum computing becomes a practical threat.
This story draws on original reporting from Decrypt.
