Crypto World
Sui targets 2027 mainnet rollout for native quantum safe account authentication
Sui has added two NIST-approved post-quantum signature schemes to its blockchain roadmap as it prepares optional quantum-safe accounts and vaults for future network upgrades.
Summary
- Sui plans to add two NIST approved post quantum signature schemes for accounts and smart contract vaults.
- Existing recovery phrases and wallet addresses can be retained when users move to quantum safe authentication.
- Quantum safe vaults are targeted for mainnet this year, with native accounts planned for testnet by the end of 2026.
- ML DSA 65 and SLH DSA are designed to protect different types of assets using separate cryptographic approaches.
- The announcement follows similar post quantum security work across Bitcoin custody, BNB Chain and other blockchain projects.
According to Sui’s latest announcement, the blockchain plans to introduce ML-DSA-65 as a native signature scheme for regular accounts and SLH-DSA-SHA2-128s for high-value smart contract vaults, giving users an optional way to protect accounts against future quantum computing risks without replacing their recovery phrases or moving assets.
The rollout comes as blockchain developers and infrastructure providers increasingly prepare for the possibility that future quantum computers could break today’s public-key cryptography.
Unlike traditional systems where public keys often remain hidden until needed, Sui said blockchain accounts expose public keys onchain once transactions occur, allowing attackers to collect them years before practical quantum computers exist.
The network warned that such “harvest-now-forge-later” attacks do not require quantum hardware today because attackers can simply archive exposed public keys and wait until sufficiently capable machines become available.
Citing research from Google Quantum AI published in March 2026, Sui said recovering a private key from an exposed public key could eventually take minutes on a fault-tolerant quantum computer using fewer than 500,000 physical qubits.
Sui also pointed to changing government timelines around quantum security. The announcement noted that while the U.S. National Institute of Standards and Technology previously targeted 2030 to phase out classical cryptographic algorithms and 2035 to prohibit them, Executive Order 14412, signed in June 2026, requires U.S. federal agencies to deploy post-quantum key establishment by the end of 2030 and post-quantum digital signatures by the end of 2031 for sensitive systems.
Sui has chosen two algorithms for different security needs
Instead of relying on one post-quantum algorithm, Sui said it selected two standardized signature schemes built on different mathematical foundations so that a weakness discovered in one would not affect the other.
For everyday user accounts, the blockchain will integrate ML-DSA-65, the Level 3 parameter set defined under NIST’s FIPS 204 standard, directly into the protocol.
The network said it intentionally selected the higher-security Level 3 option instead of Level 1 following a July 2026 incident in which researchers used an AI model to reduce the effective security of the HAWK post-quantum signature candidate after experts had previously reviewed it. According to Sui, the incident did not affect ML-DSA, but it reinforced the value of choosing stronger security margins rather than lower-cost parameters.
The announcement added that ML-DSA-65 has already gained support elsewhere. Chrome and Cloudflare use the same security level for post-quantum encryption protecting more than half of human-initiated web traffic, while AWS Key Management Service now supports ML-DSA signing and Android 17’s Keystore generates quantum-safe signatures using ML-DSA-65 inside secure hardware.
Meanwhile, high-value assets will rely on SLH-DSA-SHA2-128s, the hash-based signature scheme standardized under FIPS 205. Rather than embedding it into the protocol itself, Sui will implement it through Move smart contracts, allowing vaults to remain compatible with future post-quantum standards without requiring changes to the network’s core protocol.
According to the announcement, using separate lattice-based and hash-based cryptographic families reduces the chance that a single cryptographic breakthrough would affect every protected asset.
Existing recovery phrases will continue to work
Instead of requiring users to generate completely new wallets, Sui said its deterministic key architecture allows quantum-safe private keys to be derived from the same recovery phrases users already store today.
Wallet backup and restoration therefore continue to work through existing seed phrases, while new derivation paths generate ML-DSA-65 keys.
Existing accounts will also avoid transferring assets to new addresses. Address aliases, which have already been deployed on Sui, let users replace their authorization keys with post-quantum keys while keeping the same wallet address and asset balances.
According to the network, larger signatures remain the main trade-off. Post-quantum signatures and public keys occupy substantially more space than Ed25519 keys, increasing transaction sizes across the network.
Verification costs, however, remain much closer to existing Ed25519 signatures than the larger key sizes might suggest. Sui said transaction size limits and programmable transaction blocks can accommodate the additional data while further optimization work continues.
Rollout starts with vaults before native accounts
The blockchain said its core implementation has already been completed and benchmarked, although independent security audits are currently underway.
Quantum-safe vaults are scheduled for mainnet deployment later this year. Native ML-DSA-65 accounts are expected to reach testnet before the end of 2026, while native account authentication on mainnet is targeted for the first quarter of 2027 alongside wallet, software development kit and command-line interface support.
The rollout remains optional, following the same deployment model previously used for zkLogin and passkeys. Existing accounts, applications and smart contracts continue operating without modification, and developers do not need to update applications immediately, according to the announcement.
Support for ML-DSA-65 will also extend to Sui’s multisignature authenticator, allowing accounts to require both a classical Ed25519 signature and a post-quantum ML-DSA-65 signature before authorizing transactions.
Other blockchain projects have also accelerated quantum-security work
Sui’s announcement follows a series of post-quantum security initiatives announced across the digital asset industry during recent months.
In May, BNB Chain reported successful testing of ML-DSA-44 transaction signatures and pqSTARK consensus aggregation for BSC. While the blockchain concluded that post-quantum migration could work with existing wallets and infrastructure, testing also showed signature sizes growing from 65 bytes to roughly 2,420 bytes, reducing transaction throughput by about 40% to 50% because of larger blocks and increased network traffic.
Institutional custody providers have also started focusing on future quantum risks rather than immediate attacks. BitGo introduced quantum-risk management tools in July that measure public-key exposure, group UTXOs to avoid leaving exposed balances behind, and help institutions move assets into fresh addresses after public keys become visible onchain.
Another proposal came from AmericanFortress, which published its Zero-Knowledge Proof of Seed Provenance design through the International Association for Cryptologic Research’s ePrint archive.
The proposal would allow existing Bitcoin, Ethereum, and Solana wallet addresses to prove ownership using zero-knowledge proofs without requiring users to rotate keys or transfer funds, although deployment would still depend on blockchain protocol upgrades and adoption by wallet providers. The proposal also cited Google’s recent quantum research while noting that current quantum computers remain incapable of carrying out such attacks today.
CleanSpark’s shares fell 5.5% on Thursday after the Bitcoin miner reported $138 million in quarterly revenue, narrowly missing Wall Street’s consensus estimate.
The fallout from the Coldcard security breach is now surfacing on-chain.
According to Glassnode data, roughly 210,000 BTC have moved out of long-term holder (LTH) wallets over the past week, the largest decline since December 2024, when bitcoin approached $100,000 for the first time.
Glassnode classifies long-term holders, or LTHs, as entities whose coins have remained dormant for approximately 155 days, or just over five months. This cohort is often considered the market’s “smart money” because its members tend to hold through short-term volatility.
Long-term holder supply now stands at approximately 14.7 million BTC. Before the Coldcard incident, it was just under 15 million BTC, close to an all-time high.
Historically, heavy spending by long-term holders has coincided with periods of market strength or tops. Similar waves of distribution occurred around the market peaks of March 2021, March 2024 and December 2024, as experienced holders took profits into rising demand.
This time, however, the movement is occurring near the lows. Bitcoin is trading around $64,000, roughly 50% below its October all-time high.
EBay (EBAY) stock wavered late Wednesday after the e-commerce company’s second-quarter results exceeded expectations. Guidance for the September quarter was mixed. San Jose, Calif.-based eBay reported adjusted earnings of $1.60 per share for the June-ended quarter, up 17% from a year earlier. That beat the $1.50 per share that analysts polled by FactSet were forecasting. Sales increased 15% to $3.1 billion, compared to…
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Dunamu has secured a one-year contract to take custody of digital assets seized by South Korea’s National Police Agency after winning the agency’s public tender process.
Summary
- Dunamu has won a one year contract to custody digital assets seized by South Korea’s National Police Agency.
- Seized cryptocurrencies will be stored through Upbit Custody using offline cold wallets and round the clock monitoring.
- The police tender followed earlier incidents in which Bitcoin held by South Korean authorities went missing.
- Dunamu received the highest technical evaluation before securing the final contract after negotiations.
- The custody platform uses MPC, DKG and multi signature security with separate wallets for different asset types.
According to a statement released by Dunamu on Aug. 7, the Upbit operator was named the final winner of the Korean National Police Agency’s project to store and manage confiscated digital assets following technical negotiations that concluded the procurement process.
The announcement completes a bidding process that began earlier this year, with the company moving from preferred bidder status to the final contractor after negotiations with the police agency. The one-year agreement will place seized cryptocurrencies from police investigations under Dunamu’s custody platform.
Upbit Custody will manage seized crypto assets
Procurement documents show the contract was awarded through an open competitive tender administered by South Korea’s Public Procurement Service. Dunamu said it received the highest technical evaluation score of 94.14 before being selected as the final contractor. The company had previously been designated as the preferred negotiating bidder on July 8.
Earlier procurement records valued the contract at 267 million won, or about $195,000, for one year of custody and management services covering digital assets confiscated during criminal investigations.
Under the agreement, seized cryptocurrencies will be stored and managed through Upbit Custody, Dunamu’s digital asset custody service. According to the company, the platform operates within a 24-hour, 365-day monitoring system that continues running during nights, weekends, and public holidays so custody operations remain uninterrupted.
The custody platform also uses a security environment built around 100% offline cold wallets that remain isolated from the public internet. According to Dunamu, its infrastructure incorporates Multi-Party Computation (MPC), Distributed Key Generation (DKG), multi-signature technology and wallet segregation, allowing assets to be separated according to their type and intended use while reducing the risks associated with a single compromised private key.
A Dunamu representative said the company would use its security technology and operational controls to support the stability of South Korea’s public safety and digital policing infrastructure.
Police custody contract followed competitive bidding
Before becoming the final contractor, Dunamu ranked first during the evaluation stage of the tender process.
Procurement records released in July showed the company received a combined score of 94.73, including full marks for its bid price and 84.73 points in the technical assessment. Korea Digital Asset Custody (K-DAC) finished second with 91.29 points, while Hecto Wallet One placed third with 87.27 points.
Industry participants questioned whether the tender requirements favored larger market operators. According to local media reports published at the time, bidders were required to accept immediate custody of seized cryptocurrencies, maintain a round-the-clock response system and guarantee full compensation if assets were lost through hacking.
Several custody industry officials told local media those requirements were easier for a large exchange operator with an established infrastructure to satisfy than for standalone custody providers. One industry official described competing under those conditions as difficult from the outset.
The National Police Agency, however, rejected suggestions that the outcome had been predetermined. According to local media, the agency said the contractor had been selected through a fair competitive process.
Previous Bitcoin losses increased focus on digital asset custody
The police custody project comes after multiple incidents involving missing cryptocurrencies held by South Korean authorities.
In February, South Korea’s Gangnam Police Station confirmed that 22 Bitcoin worth approximately 2.1 billion won, or about $1.6 million, had disappeared from police custody. Authorities said the coins had originally been surrendered during a 2021 investigation before investigators discovered during a nationwide review that they had been transferred from the storage wallet without authorization.
Police said the physical cold wallet remained in their possession, suggesting the private keys had been accessed even though the storage device itself had not been removed. The Gyeonggi Northern Provincial Police Agency subsequently opened an internal investigation examining access logs, key management procedures and blockchain transaction records.
Attention had already turned to law enforcement’s handling of digital assets after an earlier case involving the Gwangju District Prosecutors’ Office, where local reports said 320 Bitcoin seized in a criminal investigation was lost. Local media also reported another incident in 2022 in which police confirmed that seized Bitcoin had gone missing.
Against that backdrop, South Korean authorities moved to place custody responsibilities with an external institution capable of maintaining dedicated security controls for seized digital assets. The finalized agreement now places those assets under Upbit Custody for the next year while the National Police Agency oversees the arrangement under the terms of the awarded contract.
Crypto market maker Wintermute has secured broker-dealer status in the U.S., giving the firm a regulated route into Wall Street as crypto trading and traditional securities markets draw closer together.
New York-based Wintermute USA LLC registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The unit will operate as a proprietary trading firm rather than a retail broker.
The registration lets Wintermute trade stocks and equity options, provide liquidity to exchanges and over-the-counter counterparties, and act as an authorized participant for exchange-traded funds (ETFs), including crypto-linked funds.
Authorized participants create and redeem large blocks of ETF shares, a process that helps keep an ETF’s market price close to the value of its holdings.
Wintermute described the unit as proprietary-only and did not announce retail brokerage services.
Authorized participants create and redeem blocks of ETF shares directly with fund issuers, helping keep fund prices aligned with their underlying assets.
The registration also lets Wintermute seek market-making roles on exchanges including the New York Stock Exchange and Nasdaq. The firm has already lined up ETF issuers to work with, the Wall Street Journal reported.
Bitcoin’s price recovery to over $64,000 could be in trouble as the backbone of the entire network and ecosystem has gone on a substantial selling spree.
Data from Lookonchain shows that two of the largest BTC miners, namely MARA and Riot Platforms, have deposited significant portions of the cryptocurrency to exchanges, with the likely intention of selling.
More specifically, MARA, which posted over $600 million in losses in Q2 but continues to hold more than $2.3 billion in BTC, deposited 200 units to NYDIG on Thursday evening.
Riot Platforms, on the other hand, used the same platform to deposit another 381 BTC (worth $24.5 million) approximately at the same time.
Bitcoin mining companies are selling $BTC.
MARA, which holds 36,303 $BTC($2.34B), deposited 200 $BTC($12.86M) into NYDIG 10 hours ago.
Riot Platforms also continues to send $BTC to NYDIG, depositing another 381 $BTC($24.51M) 10 hours ago.https://t.co/fTOd8FQMxR… pic.twitter.com/cgjHgfXGJG
— Lookonchain (@lookonchain) August 7, 2026
This behavior from MARA and Riot comes just a month after reports claimed that BTC miners had disposed of a record 32,000 units in the first quarter of 2026, which triggered a painful decline in the blockchain’s hash rate.
Separately, the prolonged bear market continues to harm smaller BTC miners, pushing some out of business. Poolin filed for Chapter 11 bankruptcy protection in New Jersey and sought approval for a $52 million sale of its Texas mining properties.
On the positive side, a solo miner managed to solve the puzzle recently and secured the 3.125 BTC prize, worth around $200,000 at that time.
The post Bitcoin Miners Are Selling Again: Here’s How Much BTC Was Reportedly Offloaded appeared first on CryptoPotato.
XRP fell on August 7 after the US Senate delayed a vote on the CLARITY Act until September, adding new pressure to a token that had already been losing ground against Bitcoin (BTC) for weeks.
The setback has renewed attention on historical price trends, with analyst ChartNerd arguing that August has consistently been a difficult month for XRP during US midterm election years.
XRP Faces Selling Pressure After Senate Delays CLARITY Vote
ChartNerd wrote on X that XRP was “already bleeding” after news emerged that the Senate had postponed consideration of the CLARITY Act until after the summer recess.
Journalist Eleanor Terrett reported that sentiment across the crypto industry was mixed following the decision to push the vote into September, with some participants frustrated while others remained hopeful that lawmakers would make the bill a priority when Congress returns. Digital Chamber CEO Cody Carbone said the industry would continue working to secure enough support for a successful vote after the recess.
Bitwise CIO Matt Hougan had said that failing to pass the CLARITY Act before Congress leaves for recess would likely weigh on sentiment in the near term, although he contended that clearer expectations could leave the market better positioned later in the year. He also noted that regulatory action from the SEC could still provide guidance even if the legislation is delayed.
“Weak hands are selling today,” noted ChartNerd, as Hougan’s assessment became a reality. However, he argued that Bitcoin and Ethereum (ETH) had yet to see similar selling and warned that XRP could face more downside before conditions improve.
In another post, he described the move as typical for August, telling traders to focus on historical data rather than emotion. The historical data he shared showed that the Ripple token posted negative August returns during every previous US midterm year, falling 5.7% in August 2014, 23.0% in 2018, and 13.7% in 2022. This produced an average drop of about 14%.
According to the analyst, the current weakness fits that historical pattern and does not represent any new development.
Analyst Keeps Long-Term View Despite Near-Term Weakness
CoinGecko data showed XRP trading at around $1.02 at the time of writing, down 3.0% in 24 hours and nearly 6% across the week. Trading volume climbed more than 14% to about $1.33 billion, suggesting that selling activity picked up as prices slipped.
The broader crypto market was also slightly weakened, with the total market cap down 0.6%, while BTC held around $64,000 and Ethereum sat close to $1,900 with barely any movement.
Even with the latest decline, ChartNerd has not abandoned his longer-term outlook. Earlier this week, he argued that XRP is inside a large cup-and-handle formation stretching back more than eight years, with possible long-term targets at $8, $13, and $27 if the broader pattern eventually plays out.
At the same time, he acknowledged that short-term trading could be difficult and has previously said that the asset could spend much of the rest of the year consolidating around the $1 level before any sustained recovery can start.
The post XRP Price Slides on CLARITY Delay as Analyst Flags Weak August Trend appeared first on CryptoPotato.
Dow Protocol has completed a $10.5 million seed funding round to expand its blockchain-based financing model that advances working capital to e-commerce merchants against pending receivables.
Summary
- Dow Protocol has raised $10.5 million in a seed funding round led by crypto focused investors.
- The company provides working capital to e commerce merchants against pending receivables using a PayFi RWA model.
- Merchant repayments are collected automatically through integrations with e commerce platforms.
- The funding comes as tokenized real world assets continue expanding across blockchain based financial markets.
Dow Protocol announced the funding round on X, saying the investment was backed by MH Ventures, Mapleblock, Animoca Brands, Arcane Group, HSKChain, Essentia Partners, and Quartet Group. The company said it is building a PayFi real-world asset (RWA) structure that lets merchants receive financing before online marketplaces release their sales proceeds.
Unlike conventional merchant financing, which often requires businesses to wait for platform settlements or lengthy underwriting, Dow Protocol said its asset servicing partners provide funding based on merchants’ outstanding receivables and credit risk data. Repayments are then collected automatically through integrations with e-commerce platforms, where funds are deducted from merchants’ platform balances.
The company did not disclose its valuation or how it plans to allocate the newly raised capital.
Dow Protocol says merchants can receive funds within seconds
Explaining its model, Dow Protocol said e-commerce merchants usually wait between 14 and 28 days before platforms release payments from completed sales. During that period, merchants often need cash to replenish inventory, pay suppliers, or finance daily operations.
To shorten that delay, the protocol said asset servicers advance funds against pending platform receivables after assessing platform-integrated credit risk data. According to the company, merchants can receive financing within seconds, while cross-border settlements can be completed as fast as the same day.
Dow Protocol contrasted its approach with traditional financing, which it said can take between two and three months before businesses receive capital.
Because repayment instructions are built into participating e-commerce platforms, the company said loan repayments are deducted automatically once merchants receive platform payouts. Dow Protocol said this process improves repayment discipline by linking settlements directly to merchant balances instead of relying on separate repayment collections.
The company also described the addressable market as a $2.8 trillion global working capital opportunity, adding that merchants are willing to pay higher financing costs in exchange for faster access to funds.
PayFi RWA model combines receivables with on-chain lending
Dow Protocol said its financing framework applies PayFi principles to real-world assets by using merchants’ accounts receivable as the foundation for on-chain lending.
According to the company, programmable loan terms on blockchain networks can simplify operational processes that traditionally require manual administration, including repayment management, accounting, and default handling. It argued that working capital financing could become one of the earliest financial sectors to migrate on-chain because these processes can be automated within blockchain-based lending systems.
The announcement positions the protocol within a growing segment of blockchain projects that tokenize financial claims or connect real-world assets with decentralized infrastructure rather than focusing solely on cryptocurrency-backed lending.
Unlike tokenized Treasury products or blockchain-based money market funds, Dow Protocol’s model is centered on financing commercial receivables generated by online merchants.
RWA activity has continued expanding across on-chain finance
Dow Protocol’s fundraising comes as tokenized real-world assets continue gaining traction across decentralized finance.
A CoinShares report published on Aug. 6 said RWA deposits across decentralized lending platforms and exchanges reached $7.4 billion during the second quarter of 2026, more than tripling from $2.3 billion a year earlier. During the same period, total DeFi deposits declined by about 15%, while the on-chain market value of tokenized funds, equities, and commodities exceeded $40 billion, according to the report.
CoinShares said much of the deposit growth came from tokenized Treasury products, private credit strategies, and yield-bearing assets that continue generating returns while being used as collateral in lending markets. The report added that Ethereum-based lending protocols accounted for most RWA collateral activity because of their established liquidity.
Trading activity also expanded during the quarter. According to CoinShares, spot trading volume for tokenized real-world assets climbed roughly 220% year over year even as aggregate decentralized exchange spot volume declined by about 70%, suggesting that tokenized financial products are developing secondary markets beyond primary issuance.
Institutional firms have continued adding tokenized financial products
Institutional asset managers have also introduced new blockchain-based financial products in recent weeks.
Earlier this month, BlackRock launched two tokenized money market offerings, BSTBL and BRSRV, extending its digital asset strategy beyond cryptocurrency investment products. The funds invest in cash, short-term U.S. Treasury securities, and overnight repurchase agreements while allowing eligible institutional investors to access tokenized fund structures under regulated conditions.
BNY Mellon serves as transfer agent and tokenization provider for BSTBL, while Securitize performs the same role for BRSRV. BlackRock has also joined the Depository Trust & Clearing Corporation’s pilot program for tokenized stocks and U.S. Treasuries alongside several major financial institutions.
Rand Hindi, CEO of the fully homomorphic encryption firm Zama, said the company reached 1,000 confidential transfers per second on GPUs, a self-reported benchmark he described as a milestone for the privacy technology. Fully homomorphic encryption, or FHE, lets computations run on encrypted data… Read the full story at The Defiant
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