This roundup covers Bitcoin's quantum security risks, Ripple's banking approval, European stablecoin trading and VanEck's new ETF. Muneeb Ali, founder of Bitcoin layer-2 project Stacks, believes quantum security concerns are already deterring institutional investment. BitBo data show that US spot Bitcoin ETFs have accumulated more than $104 billion in net assets. Security doubts could complicate Bitcoin's appeal to institutions seeking protection against currency debasement before quantum computing seriously threatens the network.
Ali warned that Bitcoin could face a more serious security problem without meaningful progress toward quantum resistance by 2028. Ali said Bitcoin needs a credible transition roadmap and cited National Institute of Standards and Technology guidance for a 2030 completion target. Advances in artificial intelligence could move that deadline earlier. Ali warned that Bitcoin has only a few years to prepare because upgrades have historically been slow and contentious. Implementation could require years even after developers agree on protections, and holders would then need time to transfer Bitcoin to quantum-resistant addresses. Some industry participants question the urgency, but Ali argued that uncertainty alone could weaken investor confidence. Ali also warned that a quantum breakthrough capable of compromising Bitcoin would affect the wider cryptocurrency market.
Ripple received final authorization from the US Office of the Comptroller of the Currency to establish a national trust bank. The decision removes the remaining regulatory obstacle following conditional approval in December 2025. Ripple National Trust Bank will operate under federal supervision. The bank will manage RLUSD reserves, act as collateral trustee for tokenholders and offer digital asset custody. Standard Custody & Trust Company, regulated by the New York Department of Financial Services, will remain RLUSD's issuer. Ripple CEO Brad Garlinghouse welcomed the decision and said, "crypto and banks work better together."
Circle received similar final approval in July. Coinbase, Crypto.com and Stripe-owned Bridge still have conditional approvals. National trust banks generally cannot take deposits or make loans, unlike traditional commercial banks. National trust banks also lack Federal Deposit Insurance Corporation coverage.
Kaiko reported that Circle's USDC overtook Tether's USDt in euro-denominated stablecoin trading as EU regulations changed competition between the two largest dollar-backed stablecoins. Kaiko put USDC's share at 56%, compared with 10% in January 2024. The change accelerated after major exchanges restricted USDt trading for European Economic Area customers to meet Markets in Crypto-Assets Regulation requirements. USDC's euro order books have roughly 40% more depth than USDt's, indicating stronger trading liquidity. However, USDt remains the global leader, with approximately 2.5 times USDC's circulating supply. The European Banking Authority designated USDC as the EU's first significant e-money token, bringing additional oversight. Kaiko suggested that the US GENIUS Act could cause similar trading changes, depending on exchanges' implementation of the requirements.
VanEck, an asset manager overseeing $244 billion, launched an actively managed ETF combining stocks, bonds, real assets and a small Bitcoin allocation. The VanEck Wealth Builder ETF, listed on the NYSE as WBMO and announced Tuesday, invests through VanEck and third-party ETFs. The fund targets a 2% Bitcoin allocation, with a permitted range of 1% to 5%. The fund obtains Bitcoin exposure through a spot Bitcoin exchange-traded product rather than owning Bitcoin directly. The launch puts VanEck's existing Wealth Builder model portfolios into one ETF. David Schassler, VanEck's head of multi-asset solutions, argued that the traditional 60/40 stock-and-bond portfolio suited a different investment environment. Schassler said real assets could help investors manage a wider range of economic conditions, with Bitcoin representing a small component of that approach.
Bitcoin's Quantum Risks and Ripple's Bank Approval Highlight Crypto Developments
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Summary
Bitcoin breaking news: Quantum computing risks for Bitcoin could deter institutional investment by 2028, warns Stacks founder Muneeb Ali. Ripple secured final approval from the US Office of the Comptroller of the Currency to launch a national trust bank, which will manage RLUSD and custody digital assets. USDC surpassed Tether in euro-based stablecoin trading due to EU rules, while VanEck launched an actively managed ETF with a small Bitcoin allocation.
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