Inside Coinbase’s $250 Billion Playbook for Post-Quantum Bitcoin Custody

Head of cryptography Yehuda Lindell says the exchange is designing custody that can adapt to whatever post-quantum signing scheme Bitcoin adopts.

• Coinbase is developing post-quantum cryptography solutions for Bitcoin custody, aiming for adaptability to various future signature schemes.
• The exchange is exploring fallback architectures using Hardware Security Modules (HSMs) if Bitcoin's post-quantum upgrade proves incompatible with current Multi-Party Computation (MPC) methods.
• This proactive approach addresses the uncertainty surrounding Bitcoin's quantum-resistant security transition, ensuring continued asset protection.

Topics: Quantum computing, Infrastructure providers, Legal regulatory, Cryptographic security risk, Custody security solutions, Enforcement actions litigation

Tags: #coinbase #postquantumcryptography #bitcoincustody #mpc #hashbasedsignatures #hsm #cryptography #security #blockchain #digitalassets

Read more

The bank custody race: who holds America’s Bitcoin

Wall Street did not wake up one morning and decide it liked Bitcoin. It woke up and realized the custody fees were too large to leave on someone else’s balance sheet. For most of the

• Major traditional banks like BNY Mellon, State Street, and Citigroup are increasingly offering Bitcoin custody services, driven by regulatory changes and the potential for significant fee revenue.
• This shift poses a structural threat to crypto-native custodians such as Coinbase and BitGo, who previously dominated the market due to banks' inability to hold digital assets.
• Key challenges remain, including the significant insurance gap for digital assets and the competition between banks offering bundled services and crypto-native firms specializing in digital asset infrastructure.

Topics: Institutional adoption, Banks bankingsystems, Legal regulatory, Banking depository pilots, Custody asset servicing, Securities law classification

Tags: #bitcoincustody #institutionalinvestors #regulatorychanges #sab121 #occ #bnymellon #statestreet #citigroup #coinbase #bitgo

Read more