Coinbase Builds Post-Quantum Custody for $250B

Coinbase is developing post-quantum custody infrastructure to protect about $250 billion in institutional crypto assets, according to Chief Cryptographer Yehuda Lindell. The post-quantum custody system is being designed to support multiple signature standards because Bitcoin and other blockchains have not yet agreed on a common approach. Coinbase initially focused on adapting multi-party computation (MPC), which distributes private-key control and reduces single-point-of-failure risks. However, some post-quantum schemes, especially hash-based signatures, may not work with conventional MPC. Research into MPC-style solutions remains experimental. The company is therefore also exploring post-quantum threshold decryption and programmable hardware security modules (HSMs). These devices could assemble encrypted private keys within physically protected infrastructure. The model may be less decentralized than MPC but could support signature standards that traditional custody systems cannot handle. Coinbase is researching ML-DSA and blockchain address migration while maintaining a blockchain-agnostic design. Bitcoin has no approved post-quantum migration plan, and the project’s completion timeline is unclear. For traders, the initiative could strengthen long-term institutional confidence in Bitcoin and crypto custody, but it does not immediately affect transaction rules, supply, or market liquidity.