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Coinbase Publishes First Paper on Quantum Computing Position for Crypto

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Coinbase Publishes First Paper on Quantum Computing Position for Crypto

Coinbase’s Independent Advisory Board on Quantum Computing and Blockchain has published its first position paper, warning that the crypto industry must begin preparing for quantum threats now.

The board includes researchers from Stanford, UT Austin, the Ethereum Foundation, Eigen Labs, Bar-Ilan University, and UC Santa Barbara. Their assessment is direct. Digital assets are safe today, but a quantum computer capable of breaking blockchain cryptography will eventually be built.

What the Coinbase Paper Found

The paper identifies wallet-level cryptography as the primary vulnerability. Digital signatures that prove asset ownership could one day be broken by a sufficiently powerful quantum machine.

For Bitcoin (BTC), an estimated 6.9 million BTC sit in wallets where key information is publicly visible on-chain.

Bitcoin’s core infrastructure, including mining and hash functions, faces no meaningful quantum threat. However, proof-of-stake networks like Ethereum (ETH) carry additional exposure through validator signature schemes.

Ethereum has already published a dedicated post-quantum roadmap targeting Layer 1 upgrades.

“Your crypto is safe today. But a quantum computer capable of threatening blockchain cryptography will eventually be built, and the industry needs to start preparing now, not when it’s urgent,” Coinbase CSO Phillip Martin explained.

Migration Challenges Ahead

The US National Institute of Standards and Technology (NIST) has already standardized several quantum-resistant cryptographic schemes.

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The building blocks for migration exist. However, new quantum-safe signatures are significantly larger than current ones, affecting transaction speed, costs, and storage.

Migrating millions of wallets across decentralized networks requires every user to take action. That coordination challenge surpasses anything traditional finance faces.

Solana (SOL), Algorand (ALGO), and Aptos (APT) have each begun offering or planning quantum-resistant options for users.

The paper also raises a difficult question for every blockchain community. Wallets that never upgrade, whether from lost keys, inactive holders, or abandoned accounts, will remain exposed.

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Each network will need to decide whether to freeze, revoke, or leave those assets vulnerable.

The board recommends those decisions be made and communicated publicly as soon as possible.

Coinbase says it is building flexible systems to adopt new cryptographic standards quickly and working with infrastructure partners on upgrade readiness.

The post Coinbase Publishes First Paper on Quantum Computing Position for Crypto appeared first on BeInCrypto.

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Crypto World

UK to Overhaul Payments Rules, Appoints Tokenization Lead

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UK to Overhaul Payments Rules, Appoints Tokenization Lead

The United Kingdom is revisiting its payments rulebook to support the adoption of new fintech and payment technologies such as stablecoins and tokenization.

In a Tuesday announcement, HM Treasury and Economic Secretary to the Treasury Lucy Rigby said the government will consult on reforms for payment services and electronic money rules.

The Treasury said the changes are meant to create a single framework for traditional and tokenized payments, including stablecoins and tokenized deposits. It also said it plans to bring forward legislation to reduce administrative burdens for companies seeking to offer stablecoin payment services.

The Treasury also named former Financial Conduct Authority veteran Chris Woolard as digital markets champion for its Wholesale Financial Markets Digital Strategy, where he will support efforts to drive adoption of tokenized digital assets.

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Woolard highlighted the growing role of digitization in financial markets, emphasizing that collaboration and a dialogue between the private and public sectors will best support the UK’s global competitiveness as a leader in digital markets.

The package comes as the UK continues to develop its broader crypto regulatory framework, with legislation expected to take effect in 2027.

A package of comprehensive measures targeting digital markets

The new package was unveiled during UK Fintech Week in London, a series of industry events supported by organizations such as Innovate Finance, the independent industry body for the UK fintech sector.

A key part of the plan is bringing stablecoins and tokenization more deeply into the payments system, including through regulatory reform as a core measure.

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Source: Lucy Rigby

“This will mean establishing a single, coherent framework for both traditional and tokenised payments, including both stablecoins and tokenised deposits,” the announcement said.

Related: BIS warns dollar stablecoins could strain banks and policy

The Treasury also said it wants to reduce administrative burdens for companies seeking to offer stablecoin payment services in a move to “cement the UK as a world-leading destination for digital assets.”

UK will seek how to adapt payment regulations to AI agents 

Another part of the package is the government’s decision to explore how payment regulation should apply when AI agents make transactions on behalf of consumers or businesses.

Philip Belamant, co-founder of Zilch, an FCA-authorised consumer credit fintech listed among key stakeholders, said that AI will “fundamentally change how people interact with money,” shifting payments to something that is managed in the background.

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“As this becomes a reality, it’s critical that regulation evolves to support innovation while maintaining strong consumer protections,” he said.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026