Naoris Protocol has gone live with its quantum-resistant blockchain mainnet, becoming the first Layer 1 network built entirely on post-quantum cryptography approved by the U.S. National Institute of Standards and Technology — a milestone arriving as researchers shorten timelines for a threat that could compromise Bitcoin and Ethereum.

“Mainnet represents the transition from proof-of-concept to production infrastructure. The network has already validated over 100 million transactions using post-quantum cryptography. That is not a roadmap promise; it is measured, operational capacity,” said Nathaniel Szerezla, Chief Growth Officer of Naoris Protocol.

The mainnet runs on NIST’s ML-DSA algorithm — the standardized version of CRYSTALS-Dilithium, published as FIPS 204 — for all transaction signatures. The system enforces an “irreversible security transition”: once a user adopts post-quantum keys, the protocol automatically blocks any subsequent transaction attempts using classical cryptographic methods.

The Quantum Insider confirmed that the launch is directly timed to accelerating regulatory pressure: Google published research in late March 2026 estimating that breaking Bitcoin’s elliptic curve cryptography would require fewer than 500,000 qubits — far below previous estimates — while Ethereum co-founder Vitalik Buterin outlined a quantum migration plan in February 2026.

Why Timing Matters

NIST finalized its post-quantum cryptographic standards in August 2024. The European Commission has mandated member states begin national post-quantum strategies by 2026, with full migration required by 2035. The White House’s National Cybersecurity Strategy in March 2026 accelerated federal adoption of post-quantum cryptography.

Industry analysts have warned that approximately 4.5 million Bitcoin sit in addresses with exposed public keys, potentially vulnerable once quantum capability reaches the necessary threshold. Naoris Protocol’s CEO first outlined this threat model in detail, warning that “harvest now, decrypt later” attacks are already underway — meaning encrypted data is being collected today in anticipation of future decryption capability.

What the Network Offers

Naoris operates as a Sub-Zero Layer — infrastructure positioned beneath traditional L1 and L2 networks, designed to secure validators, wallets, exchanges, DeFi protocols, and cross-chain bridges. Users who move assets to Naoris receive quantum-resistant protection; assets remaining on classical chains stay exposed.

“Assets moved to Naoris become quantum-secure, while assets left on classical chains remain vulnerable. The earlier users migrate, the smaller their exposure window,” Szerezla told Decrypt. In September 2025, Naoris was cited in an SEC research submission as the reference model for the Post-Quantum Financial Infrastructure Framework (PQFIF).

Coinbase has secured conditional approval from the Office of the Comptroller of the Currency for a national trust charter. The decision signals progress toward federal oversight of its custody business and strengthens its position in institutional crypto infrastructure.

Coinbase Moves Toward Federal Custody Framework

Bitcoin traded near $68,000 as markets absorbed regulatory developments in the United States. Meanwhile, Coinbase advanced its institutional strategy with a key approval milestone. The company aims to expand federally supervised custody services.

The OCC granted conditional approval for Coinbase National Trust Company after reviewing its application. The regulator outlined requirements that Coinbase must meet before receiving full authorization. These conditions include compliance systems, governance frameworks, and risk controls.

The approval does not permit deposit-taking or lending activities under the trust structure. Instead, Coinbase will focus on custody, staking, and fiduciary services for institutions. This model aligns with existing trust company frameworks used in financial markets.

Conditions Highlight Compliance and Risk Controls

Coinbase must satisfy several operational and regulatory conditions before launching the trust entity. These include anti-money laundering programs and know-your-customer procedures. The company must also meet capital and liquidity standards set by regulators.

Additionally, Coinbase needs to demonstrate strong governance and internal risk management systems. The OCC requires an operating agreement that defines oversight and reporting obligations. Only after meeting these conditions will the regulator grant full approval.

The timeline for completion remains uncertain, although similar approvals took several months. Coinbase filed its application in October 2025, and the review extended beyond earlier cases. The scale of assets under custody likely influenced the extended review process.

Institutional Demand Drives Charter Strategy

Ethereum traded near $3,400 as institutional participation continued to expand across digital asset markets. Meanwhile, Coinbase reported hundreds of billions in assets under custody. This scale highlights its importance in institutional crypto infrastructure.

The company already serves as custodian for several U.S. spot Bitcoin exchange-traded funds. A federal charter would enhance its credibility among pension funds and asset managers. These clients often require federally regulated counterparties for custody services.

Moreover, the charter enables Coinbase to operate under a unified national regulatory framework. This reduces reliance on state-level licensing systems such as those in New York. It also simplifies compliance across multiple jurisdictions.

Regulatory Context and Industry Competition

Ripple Labs, Circle, and Paxos have also received similar conditional approvals. The OCC has expanded its oversight of crypto-native firms through these charters. Each company must independently meet pre-opening conditions before operating.

At the same time, Binance continues to lead in global trading volumes. However, Coinbase holds a significant share of institutional custody assets. This distinction reinforces its focus on regulated financial infrastructure.

The broader regulatory environment remains complex, with ongoing debates in Congress over digital asset legislation. Coinbase has also engaged in legal actions to defend certain product offerings. These developments reflect evolving oversight across the crypto sector.

Tether is pressuring investors to commit to a fundraising round at a $500 billion valuation within the next two weeks, saying that it may delay the raise if demand falls short.

The El Salvador-based firm has been seeking fresh capital since late last year but has faced resistance from investors wary of the valuation, The Information reported Friday, citing unnamed sources. If commitments fall short of expectations, the company is likely to delay the raise.

The $500 billion target would place Tether among the world’s largest financial firms, exceeding every US bank except JPMorgan Chase. JPMorgan, the largest bank in the world, has a market capitalization of about $794.55 billion, while the second-largest bank in the country, Bank of America, has a market cap of $352.86 billion.

Tether’s USDt (USDT) stablecoin, the world’s largest stablecoin, currently has a market cap of $184 billion. The company’s other top products include Tether Gold (XAUt) and Tether EURt (EURt), pegged to the euro.

Related: Stablecoin supply reaches $315B in Q1 as USDC rises, USDT declines

Tether explores fundraising

In September last year, Bloomberg reported that Tether was exploring a fundraising round of up to $20 billion that could value the company at around $500 billion. The firm was considering raising $15 billion to $20 billion through a private placement for roughly a 3% stake, with Cantor Fitzgerald acting as lead adviser.

Following the report, CEO Paolo Ardoino said on X that the company was exploring a raise from a select group of investors to expand across “existing and new business lines (stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, media) by several orders of magnitude.”

However, in a comment to Cointelegraph in February, Ardoino denied reports that it planned to raise up to $20 billion, saying earlier figures were hypothetical scenarios rather than an active fundraising plan. Still, he defended the $500 billion valuation, comparing the company’s profits to AI platforms such as OpenAI.

Cointelegraph reached out to Tether for comment, but did not get a response by publication.

Related: Tether says ‘Big Four‘ firm to handle first full audit of USDT reserves

Tether taps KPMG for first full audit od USDt

Meanwhile, Tether has reportedly hired KPMG to conduct its first full audit of USDt’s financial statements, with PwC assisting in preparing internal systems, according to the Financial Times. The move follows years of relying on reserve attestations from BDO Italia rather than a comprehensive audit.

A full audit would go beyond reserve snapshots to examine assets, liabilities and internal controls across Tether’s balance sheet.

Magazine: Bitcoin may take 7 years to upgrade to post-quantum — BIP-360 co-author