Post-quantum security-focused startup QuFi Network has launched a verification platform aimed at protecting digital assets from potential future quantum computing attacks—without forcing users to upgrade or fork existing blockchain settlement layers. The approach, according to QuFi, is built around separating “verification” from “settlement,” so that transactions can be validated with post-quantum cryptography while value is ultimately settled on familiar networks.

Alongside the platform, QuFi introduced uBTC, a proof of concept that applies the verification system to Bitcoin collateral. uBTC is currently running on Bitcoin testnet, with redemptions designed to complete as standard Bitcoin transactions after the verification step produces cryptographic proofs that govern how value can move between settlement environments.

Key takeaways

• QuFi’s platform validates transactions using post-quantum cryptography before settling them on existing blockchain networks, avoiding direct post-quantum signature deployment on-chain.
• uBTC is a Bitcoin-focused proof of concept on testnet, verifying BTC collateral and issuing proofs that constrain value movement, while final settlement remains standard Bitcoin transactions.
• QuFi says the design uses three post-quantum cryptographic standards—ML-DSA-65, SLH-DSA, and ML-KEM-1024—to handle signatures and secure key exchange.
• The company’s stated goal is to reduce potential increases in storage, bandwidth, and computation that can come with using larger post-quantum primitives directly within blockchains.
• The launch lands as multiple parts of the ecosystem experiment with quantum-resistant techniques, including Bitcoin signature proposals and efforts by institutions and protocol developers.

A verification layer instead of a blockchain upgrade

QuFi’s main product concept centers on an external verification layer. Rather than asking each settlement network to adopt new post-quantum cryptographic rules, QuFi proposes using a decentralized set of nodes to validate transactions with post-quantum cryptography ahead of settlement.

In QuFi’s framing, this architecture helps address one of the most common implementation challenges in the post-quantum transition: larger keys and signatures can translate into higher on-chain costs and performance overheads. By performing verification off the settlement path, QuFi says it aims to avoid added storage, bandwidth, and computing demands that could arise from integrating post-quantum primitives directly into individual chains.

The platform uses post-quantum standards that cover both digital signatures and key exchange. QuFi lists ML-DSA-65 and SLH-DSA for signatures, and ML-KEM-1024 for secure key exchange—building blocks it says are used to generate and check cryptographic proofs prior to settlement on existing blockchains.

uBTC on Bitcoin testnet: proofs constrain value movement

QuFi also launched uBTC, described as a proof-of-concept system applying the verification approach to Bitcoin. The system is currently operating on Bitcoin testnet4.

Per QuFi’s description, uBTC verifies BTC collateral and generates cryptographic proofs that govern how value moves between settlement environments. Importantly, QuFi says the redemptions ultimately settle as standard Bitcoin transactions. That means the Bitcoin network would not be required to run post-quantum signatures as part of the final settlement step—at least within this proof of concept.

For investors and developers tracking quantum-readiness, this structure is notable because it suggests one possible pathway for gradual migration: keep the “trust anchor” settlement layer stable while introducing stronger cryptographic verification elsewhere. The remaining question is how widely such proof-based settlement constraints can be adopted—especially when interacting with multiple networks and wallets that may have different assumptions about validation and finality.

Why the timing matters: quantum defense work is accelerating

QuFi’s announcement arrives amid a broader push across crypto to prepare for quantum-related risks. In August, StarkWare reportedly tested a quantum-resistant Bitcoin transaction on mainnet without requiring a fork. While the test demonstrated feasibility, the same coverage noted that the transaction required hours of computation and cost roughly $150 to $200, and it used a nonstandard format that required direct miner submission.

That earlier experiment highlights the practical friction QuFi is trying to bypass: even when post-quantum methods are technically possible, making them efficient and compatible with mainstream blockchain transaction flows is difficult. QuFi’s verification-layer approach is positioned as one way to reduce those integration costs.

Institutional and regulatory efforts are also part of the picture. According to prior reporting, banks and regulators across Europe, the Middle East, and Asia joined a pilot testing post-quantum wallets and onchain transfers using ML-DSA-65—one of the standards QuFi says it uses in its platform. Meanwhile, the Ethereum Foundation reportedly dropped its planned Poseidon hash function from a post-quantum architecture in favor of established alternatives such as SHA or BLAKE, reflecting a preference for reducing uncertainty by leaning on primitives with broader operational familiarity.

Bitcoin’s protocol-level experiments: trade-offs are already showing

Beyond off-chain or verification-layer approaches, some Bitcoin-focused quantum defenses are being explored directly at the protocol or signature scheme level. In August, Blockstream researchers published a Bitcoin Improvement Proposal for SHRINCS, an experimental post-quantum signature scheme intended to reduce size and performance costs associated with quantum-resistant signatures.

However, the same coverage also emphasized constraints and open issues. SHRINCS relies on stateful signatures to shrink signature size, which would require wallets to track signing keys previously used. It also remains early-stage, with no completed security proof referenced in that reporting, and it adds complexity that could increase user error risk if wallet implementations do not correctly manage state.

Compared with these protocol-level directions, QuFi’s emphasis is on reducing direct changes to settlement chains. For readers, the practical takeaway is that quantum readiness is not a single technology swap—it’s a spectrum of strategies, ranging from experimental signature schemes that modify transaction formats to separate verification systems that attempt to preserve existing settlement processes.

As QuFi’s platform and uBTC evolve, the key things to watch are how proof generation and verification perform under realistic load, whether the proofs integrate cleanly with broader wallet and settlement workflows, and how the project’s approach compares in cost and usability to protocol-level quantum defenses like SHRINCS. The next milestones—especially any expansion beyond testnet and any evidence of interoperability—will likely determine whether verification-layer quantum protection can move from concept to practical deployment.

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What AI can’t replace

The National Sheriffs’ Association (NSA) has dropped its opposition to a cryptocurrency market structure bill scheduled for a vote later this month when the US Senate returns to session.

In a Thursday letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the US law enforcement group said that it was changing its position on the Digital Asset Market Clarity (CLARITY) Act to “neutral.” The NSA cited the “significant work undertaken by Congress, the Administration, and stakeholders to navigate the many legal, regulatory, and enforcement considerations involved” in addressing the bill.

“At this time, we believe the most appropriate course is to step back and allow the legislative process to proceed to establish a clear, effective, and much needed regulatory framework,” said NSA president Troy Wellman and CEO and executive director Justin Smith.

The NSA previously expressed opposition to provisions in the CLARITY Act, saying it had “significant concerns” about amendments to exempt crypto mixers from many registration requirements. According to the group, the provision could “[impair] law enforcement’s ability to trace transactions and digital assets, and recover victims’ money.”

“The CLARITY Act protects the crypto industry, not the public,” said Sheriff Jim Skinner in a July video from the NSA.

Related: Rushed CLARITY Act vote could set legislation back, Gallego warns

Passed by the US House of Representatives in July 2025, the CLARITY Act has faced several hurdles since it was sent to the Senate for consideration. Although the Senate agriculture and banking committees passed their versions of the bill in 2026, many interest groups and lawmakers continue to raise concerns about aspects of the legislation, including stablecoin rewards, tokenized equities and potential conflicts of interest from President Donald Trump and his family. 

Before breaking in August, Thune filed a motion to hold a cloture vote on the bill on Sept. 15 after senators return from state work periods. 

US regulators to move forward without CLARITY?

In August, Trump stood alongside the heads of the US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and several digital asset companies to push for passage of CLARITY. SEC Chair Paul Atkins and CFTC Chair Michael Selig — both nominated by Trump — have signaled that their agencies would address crypto regulation if Congress were unable to pass the market structure bill.

Magazine: Token buybacks are booming. But are they good for crypto projects?

Post-quantum infrastructure company QuFi Network has launched a verification platform designed to protect digital assets against future quantum computing threats without requiring changes to existing blockchain settlement networks.

The platform separates verification from settlement, using a decentralized network of nodes to validate transactions with post-quantum cryptography before they are settled on existing blockchain networks.

QuFi also launched uBTC, a proof-of-concept that applies the verification system to Bitcoin (BTC) and is currently operating on Bitcoin Testnet4. The uBTC system verifies BTC collateral and generates cryptographic proofs governing how value moves between settlement environments, while redemptions ultimately settle as standard Bitcoin transactions.

The platform uses three post-quantum cryptographic standards — ML-DSA-65, SLH-DSA and ML-KEM-1024 — for digital signatures and secure key exchange.

QuFi said the external verification layer is intended to avoid the added storage, bandwidth and computing demands that can come with adopting larger post-quantum signatures directly on individual blockchains.

Related: Crypto’s first quantum attack will look like unexplained breach: Quantus founder

Crypto ramps up quantum defenses

The platform arrives amid a series of recent efforts to prepare blockchain networks for potential quantum computing threats.

In August, StarkWare tested a quantum-resistant Bitcoin transaction on mainnet without requiring a fork. However, the transaction took hours of computation and cost roughly $150 to $200, and its nonstandard format required direct submission to a miner.

Jonas Nick announces the BIP SHRINCS proposal on Aug. 26. Source: Jonas Nick

The same month, banks and regulators across Europe, the Middle East and Asia joined a pilot testing post-quantum wallets and onchain transfers using ML-DSA-65, one of the same cryptographic standards incorporated into QuFi’s platform. Meanwhile, the Ethereum Foundation dropped the Poseidon hash function from its planned post-quantum architecture in favor of established alternatives such as SHA or BLAKE.

Bitcoin developers are also exploring protocol-level defenses. In August, Blockstream researchers published a Bitcoin Improvement Proposal for SHRINCS, an experimental post-quantum signature scheme designed to reduce the size and performance costs associated with quantum-resistant signatures.

The approach comes with trade-offs. SHRINCS uses stateful signatures to reduce their size, requiring wallets to track previously used signing keys. The scheme remains in an early stage without a completed security proof, and its design adds complexity and potential user failure modes.

Magazine: Bitcoin’s new quantum defenses, 18.9M SOL cancelled: Hodler’s Digest

Tesla Cybercabs stock crashed 6% in an hour this morning following news of a compliance audit.

Yesterday, Tesla commercially deployed Cybercabs onto public streets in Austin, Texas. By the end of the day, the National Highway Traffic Safety Administration (NHTSA) quietly opened a new probe, Audit Query AQ26002, of up to 1,000 Tesla vehicles, which would more than cover the company’s Cybercab fleet of only a few dozen vehicles.

Tesla stood behind its claim that “Cybercab is engineered to be the safest car on the road.”

The NHTSA doesn’t typically pre-approve vehicles for compliance with Federal Motor Vehicle Safety Standards (FMVSS).

Manufacturers self-certify compliance with FMVSS standards, or request a limited exemption in advance.

Whenever the NHTSA suspects non-compliance with FMVSS standards, the agency may probe conduct and pursue remedies. In Tesla’s case, the NHTSA said it “is opening this AQ to examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues.”

Cybercab has no permanently attached steering wheel, brake pedal, accelerator pedal, or rearview mirrors. In Tesla’s view, these omissions make the car look futuristic and are safe.

An Audit Query is not an allegation of misconduct. The NHTSA’s Cybercab notice doesn’t announce a recall or any current determination of noncompliance.