Key Takeaways

• The convergence of artificial intelligence with quantum computing is shortening the timeline for potential threats to blockchain encryption systems.
• Adversaries are employing “harvest now, decrypt later” tactics, collecting encrypted blockchain data today for future decryption when quantum technology matures.
• The majority of blockchain platforms, from Bitcoin to Ethereum, depend on elliptic curve cryptography that quantum machines could eventually compromise.
• Machine learning technologies serve dual purposes: attackers leverage them to discover vulnerabilities while defenders deploy them for security audits and verification processes.
• Major blockchain ecosystems including NEAR, Ethereum, Solana, and additional networks are actively developing quantum-resistant migration roadmaps.

Security professionals and blockchain researchers are sounding alarms that machine learning advancements are propelling quantum computing capabilities forward at an unprecedented pace. This technological convergence is compelling cryptocurrency platforms to fundamentally reconsider their approach to safeguarding digital assets and sensitive information.

What once seemed like a distant hypothetical scenario—quantum computers posing genuine risks to blockchain infrastructure—now appears to be approaching faster than the industry anticipated, according to leading researchers.

Understanding the Fundamental Risk

The overwhelming majority of cryptocurrency networks, notably Bitcoin and Ethereum, depend fundamentally on elliptic curve cryptography to maintain wallet security and transaction integrity. A quantum computer with adequate processing capability could potentially reverse-engineer private keys from their corresponding public keys, creating pathways for malicious actors to compromise and empty vulnerable cryptocurrency wallets.

According to Alex Pruden, CEO of Project Eleven—a firm specializing in quantum-resistant blockchain infrastructure—the landscape is transforming rapidly. “Between quantum and AI, we’re going to go into a world where security, you simply cannot count on the way you’ve always done things,” he said.

What was once purely academic speculation has evolved into a concrete concern. Security professionals now highlight a troubling tactic called “harvest now, decrypt later”—where well-resourced adversaries systematically capture encrypted information in the present, banking on future quantum computing breakthroughs to unlock it.

Illia Polosukhin, co-founder of NEAR Protocol and former AI researcher at Google, expressed stark concerns about the timeline. “Everything we’re putting on the internet, if you’re identifiable as a person of interest, you can assume will be decrypted in two years,” he said. “It’s most likely happening already.”

The Dual Role of Artificial Intelligence

Artificial intelligence isn’t merely hastening quantum threats—it’s actively being deployed in current-day offensive and defensive cybersecurity operations across the cryptocurrency landscape.

From an attack perspective, AI models are demonstrating increasing sophistication in identifying security weaknesses within software systems. Pruden anticipates that machine learning will dramatically increase the frequency of successful exploits within the industry, as these systems grow more adept at discovering cryptographic implementation flaws and potentially compromising weaker security protocols entirely.

Conversely, blockchain developers are harnessing artificial intelligence for protective purposes, including automated code reviews, formal verification processes, and comprehensive testing of quantum-resistant cryptographic systems. These methodologies can identify and neutralize security vulnerabilities before malicious actors can exploit them.

Polosukhin, whose AI research work at Google dates back to 2016, emphasizes the accelerating nature of machine learning breakthroughs. “The rate of research is going to accelerate from here, and we have already seen progress that people didn’t expect would come this early,” he said.

He further highlighted a concerning cyclical pattern: artificial intelligence facilitating the development of more sophisticated quantum computers, which could subsequently enable the creation of even more advanced AI architectures.

How Blockchain Platforms Are Responding

Numerous cryptocurrency projects have moved beyond planning stages and are actively implementing countermeasures. NEAR Protocol recently unveiled initiatives to embed post-quantum cryptographic standards directly into its account architecture. This architectural decision would enable users to upgrade their cryptographic protections seamlessly without requiring asset migration to entirely new wallet addresses.

Polosukhin revealed this was an intentional design consideration from inception. “Back in 2018, when we were designing NEAR, we were like: hey, quantum will come, we should have an easy way to do it,” he said.

Ethereum, Zcash, Solana, and Ripple are similarly engaged in researching and deploying their respective post-quantum security frameworks.

The migration pathway presents significant technical challenges. Existing post-quantum cryptographic standards generally require substantially more data storage and computational resources. “The cryptography that’s currently standardized for post-quantum is very big and slow,” Polosukhin said.

Pruden articulated the paradigm shift facing the industry: cryptographic security can no longer operate on decade-long update cycles. Instead, it demands continuous monitoring, assessment, and evolution.

“Nothing is going to be as static as it’s been in the future,” he said.

Artificial intelligence agents settling payments have gone from concept to reality in the last 12 months, with $73 million settled across 176 million transactions from May last year through April 2026, according to crypto investment firm Keyrock.

In a report released Thursday, written in collaboration with crypto exchange Coinbase and the blockchain Tempo, Keyrock researcher Ben Harvey said that “in the past 12 months, machine-to-machine payments have gone from concept to a developed ecosystem.”

“Agents have settled over $73 million across 176 million transactions, and incumbents have deployed more than $8 billion in acquisitions to secure their position in what is emerging as an entirely new payment stack,” Harvey added.

Source: Keyrock

AI agents are becoming increasingly popular among crypto users. Some crypto executives have speculated that AI agents settling transactions could drive adoption and transaction volumes, with Circle CEO Jeremy Allaire predicting in January that billions of AI agents will operate with stablecoins on users’ behalf within five years.

Traditional payment rails too slow and expensive

By the end of the first quarter this year, there were more than 104,000 agents registered across 15 or more directories and registries, according to Harvey. The average transaction size was about 31 cents.

“That number tells you almost everything about why traditional payment rails can’t serve this market. A fixed processing fee of roughly 30 cents per transaction makes sub-dollar payments uneconomical. An agent paying three cents for a weather API call can’t route through Visa,” Harvey said.

“Stablecoins won the settlement layer for machine commerce almost by default; they were the only instrument that could handle sub-dollar transactions without the economics collapsing.” 

Related: Exodus launches AI agent-focused stablecoin on Solana  

AI agents are also used to build Web3 applications, launch tokens and interact with services and protocols autonomously, with some platforms exploring AI for trading. Last April, a CoinGecko survey of 2,632 crypto users found that most are comfortable with AI trading on their behalf; 87% said they would let AI agents manage at least 10% of their crypto portfolio.

USDC the leading settlement option

More than 98% of settlements by AI agents were in Circle’s USDC (USDC), according to Harvey, who said this serves as both a “validation and a vulnerability” because the entire ecosystem depends on one company, carrying significant risks.

“This is a lot of dependence on a single stablecoin issuer’s reserve management, regulatory standing, and technical infrastructure. If Circle faces a regulatory challenge, a de-peg event, or even sustained downtime, the agent economy has no fallback,” he added.

“This is a systemic risk that nobody in the space is publicly discussing, and one we believe warrants serious attention as volumes scale.”

Magazine: Crypto scammers face death, Aussie CGT makes Asian hubs attractive 

Fundamental Background

At the end of February, Netflix withdrew from the bid for Warner Bros. Discovery assets after WBD’s board deemed Paramount Skydance’s $31-per-share offer more attractive. Netflix chose not to raise its own bid of $27.75 per share and received compensation of $2.8 billion. The market reacted positively to the company’s exit from the months-long M&A battle, as the threat of adding more than $40 billion in debt to the balance sheet was removed.

The second key event was the company’s Q1 2026 earnings report, released on 16 April. Revenue reached $12.25 billion (+16% year-on-year), while earnings per share came in at $1.23, exceeding consensus forecasts. However, guidance for Q2 fell short of analysts’ expectations for both revenue and EPS, while company founder Reed Hastings announced plans to step down from the board in June. Together, these factors triggered a sharp negative market reaction in April.

Technical Picture

The long-term downtrend in Netflix shares began in July 2025, when the stock was trading near historic highs around $134. The period from 13 November 2025 to 23 February 2026 marked the final phase of this trend, during which the price declined towards $75.

The gap on 27 February 2026 — a direct consequence of the company’s withdrawal from the WBD deal — broke the descending trendline and was accompanied by an abnormal surge in vertical trading volume. The subsequent rally pushed the stock towards $109, which may now act as a resistance zone on any renewed advance. The gap on 17 April reversed the move lower, also on elevated volume, returning the price to the range of the current volume profile.

At present, the shares are trading slightly above the lower boundary of the profile, while the Point of Control (POC) zone lies around $94.50–$96.00 and may serve as a reference point in the event of a recovery. The $85.00 area could become the nearest significant support below the profile. RSI with moving averages currently shows readings of 47 / 46 / 42 — all three lines remain below the 50 mark and have yet to form any impulsive structure.

Key Takeaways

Netflix’s technical structure reflects two polar opposite events within the same year: the breakout of the long-term downtrend following a corporate event, and the subsequent correction after disappointing guidance. The stock’s next direction will largely depend on whether the market can hold above the lower boundary of the profile and how convincing the company’s operational progress proves to be in Q2.

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Coinbase CEO Brian Armstrong said the financial system still needs eight key upgrades before crypto-based finance can reach wider use. 

His list covered RWA tokenization, 24/7 global trading, stablecoin payments, AI tools, self-custody wallets, easier capital formation, sound money, and better regulation.

Armstrong said the future system will become more global, more automated, and more on-chain. He wrote that the work is not complete until these systems serve more users, adding, “Jobs not done until we get these working for all.”

RWA tokenization leads Coinbase CEO’s upgrade list

Armstrong placed tokenization of real-world assets at the top of his list. He said real estate, stocks, bonds, and funds can move on-chain to support faster settlement, wider distribution, and fractional ownership.

The comment comes as tokenization remains a leading crypto theme in 2026. Related reports said the tokenized RWA market grew 263% year over year in 2025 and about 30% in the first quarter of 2026.

Coinbase has also tied its public strategy to this shift. In its Q1 2026 earnings call, the company said stablecoins had passed $300 billion in market value, while tokenized real-world assets were expected to reach $16 trillion by 2030.

Stablecoins and AI payments gain ground

Armstrong also named next-generation payments as a needed upgrade. He pointed to near-instant, low-cost global transfers using stablecoins, including payments made by AI agents.

That view matches Coinbase’s recent work around machine payments. Related coverage said Coinbase’s x402 protocol became native to Amazon Bedrock AgentCore, letting AI agents pay for services in USDC without human input. The report said transactions settle on Base in about 200 milliseconds.

Separate coverage said Coinbase launched Agentic.market, a marketplace where AI agents can find and buy services using USDC through x402. At launch, the system had settled about 165 million transactions across more than 480,000 agents.

Regulation and access remain central themes

Armstrong also called for innovation-friendly regulation. He said rules should move away from one-size-fits-all systems and toward risk-based models that support competition.

The point follows Coinbase’s support for the CLARITY Act. Related reports said Armstrong backed the bill before a Senate markup, after lawmakers adjusted language on stablecoin yield, DeFi, tokenized stocks, and the CFTC’s role in crypto markets.

The Senate Banking Committee later advanced the CLARITY Act in a 15 to 9 vote. Related reports said Coinbase stock rose 8% after the vote, while the bill still needed a full Senate vote and reconciliation with the House version.

Meanwhile, Coinbase stock was trading at $184.99, down 4.43% over the past 24 hours, with the session range between $184.60 and $195.59, according to TradingView market data.

Coinbase expands stablecoin infrastructure

Armstrong also named expanded access as part of the financial upgrade. He pointed to open protocols, fewer middlemen, and self-custody wallets for users with smartphones.

Coinbase has moved in that direction through new stablecoin tools. Related coverage said Coinbase and Flipcash launched USDF, a Solana-based custom stablecoin fully backed by USDC. Coinbase said the product helps businesses issue branded stablecoins without building the full reserve and settlement system.

The broader message from Armstrong is clear: Coinbase sees future finance as faster, more open, and more automated. His post links tokenization, stablecoins, AI, and regulation into one roadmap for on-chain finance.

The U.S. Securities and Exchange Commission has reportedly delayed plans to introduce a proposed exemption for tokenized stock trading after exchanges and market participants raised concerns over investor protections and how blockchain-based ownership would function in practice.

According to a Bloomberg report published Friday, SEC staff had already reviewed a draft framework tied to the agency’s proposed “innovation exemption,” which was expected to be released earlier this week before discussions slowed.

People familiar with the matter told Bloomberg that feedback from stock exchange officials and other market participants centered on whether tokenized equities could preserve the same legal and economic rights attached to traditional shares. 

Questions were also raised over how ownership records would be verified on semi-pseudonymous blockchains and whether unauthorized firms could issue stock-linked tokens without approval from the underlying public companies.

Under the proposal reviewed by the SEC, platforms offering tokenized equities would need to ensure investors retain rights typically associated with common stock, including dividend access and shareholder voting privileges.

Earlier in the week, SEC Commissioner Hester Peirce had already signaled

 that any exemption under consideration would likely remain narrow in scope. 

In comments posted to X on Thursday, Peirce said she expected the framework to support only “digital representations” of equity securities that already trade in public secondary markets.

SEC discussions narrow focus to issuer-backed equities

At the same time, the latest delay has drawn support from several crypto industry executives who argued that the SEC should avoid rushing a framework for tokenized securities.

Carlos Domingo, the CEO of tokenization platform Securitize, wrote on X that regulators should ensure the exemption “applies to the right instruments,” adding that delaying the proposal would be preferable to introducing rules that create operational or legal problems.

Separately, Tom Farley, the CEO of crypto exchange Bullish, said on X that the SEC appeared to be recognizing that only public companies themselves should be permitted to issue blockchain-based versions of their shares.

Behind the discussions, the SEC has continued drawing a distinction between different forms of tokenized securities. In guidance released in January, the agency classified such products into “custodial” and “synthetic” categories.

Custodial tokenized securities are issuer-backed shares held through regulated intermediaries and provide investors with shareholder rights tied to the underlying stock. Synthetic tokenized securities, by contrast, only offer price exposure to equities without transferring ownership of the underlying shares.

Growing interest in tokenization from Wall Street firms and crypto companies has coincided with the SEC taking a more crypto-friendly stance under the Trump administration. Data from RWA.xyz shows that tokenized real-world assets have reached roughly $34 billion, including about $1.55 billion tied to tokenized equities.

Total RWA market value. Source: RWA.xyz

Despite that growth, adoption has remained below earlier industry projections. According to a McKinsey & Company report published in 2024 tokenization could grow into a multi-trillion-dollar market by the end of the decade.

Nasdaq has moved closer to offering cash-settled bitcoin BTC$77,338.29 index options, a move set to democratize crypto risk management and eliminate legacy operational barriers.

Last week, the U.S. Securities and Exchange Commission granted Nasdaq PHLX conditional approval to list European-style options under the ticker QBTC. These will be cash-settled, European-style options tracking the CME CF Bitcoin Real Time Index (BRTT).

Cash-settled means the options are settled in U.S. dollars. At expiration, the exchange credits or debits the cash difference between the strike price and the final index value and no actual bitcoin is delivered or received.

For the average market participant, the new product, still pending approval from the Commodity Futures Trading Commission (CFTC), removes operational friction. QBTC options will trade on the same Nasdaq platform as popular technology stocks, allowing participants to execute hedging strategies and bitcoin volatility bets directly through their existing brokerage accounts without needing a separate futures or derivatives account.

By contrast, CME’s bitcoin options, which have been available since 2020, are also cash-settled but track Bitcoin futures rather than the spot index. They also require a dedicated derivatives account, adding operational complexity.

The story doesn’t end there.

Each Nasdaq QBTC option contract delivers exposure equivalent to exactly 1 BTC, using a 1/100th index scaling factor with a standard $100 multiplier. By comparison, the CME’s standard Bitcoin option is sized at 5 BTC, often representing hundreds of thousands of dollars in notional exposure.

This much smaller contract size opens the door for precise hedging by smaller institutional managers and more affordable volatility trading for retail participants.

Options are derivative contracts that give the purchaser the right to buy or sell the underlying asset at a predetermined price on a later date. A call option gives the right to buy and represents a bullish bet, while a put offers protection against price slides.

Think of it like paying a small non-refundable deposit to lock in the right to buy/sell a house at today’s price anytime over the next few months. If property prices rise/fall, you can still purchase/sell at the pre-agreed price and benefit from the gain. If you change your mind, you simply walk away, losing only the initial deposit.

Crypto options, led by bitcoin contracts, have seen explosive growth in recent years, as institutionalization of the market triggered demand for sophisticated risk management and yield-enhancing strategies.