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.
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.
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.