Coinbase is accelerating efforts to safeguard crypto assets from future threats posed by quantum computers. The exchange revealed plans to develop quantum-resistant custody technology now, despite the timeline for quantum computers breaking current cryptography remaining uncertain.

On July 23, Jeff Lunglhofer, Coinbase’s Chief Information Security Officer, emphasized the urgency: “A large-scale quantum computer capable of breaking current cryptography will eventually be built. No one knows exactly when. But the work to prepare needs to start now, not when it’s urgent.”

Preparing for a Post-Quantum World

To address these risks, Coinbase assembled an Independent Advisory Board on Quantum Computing and Blockchain. This panel holds strong confidence that fault-tolerant quantum computers will emerge, threatening the cryptographic foundations of Bitcoin, Ethereum, and other digital assets.

Coinbase’s approach includes building a quantum-resistant version of the system securing nearly 99.9% of its custodial assets. The company is also contributing funding and engineers to the broader Bitcoin post-quantum security initiatives and plans to host a meeting in August at Stanford, bringing together Bitcoin developers, cryptographers, and researchers to tackle these challenges collaboratively.

The exchange’s warnings do not indicate immediate vulnerabilities, but highlight that upgrading blockchains and migrating millions of users to new cryptographic methods could take many years. This long lead time makes early action critical.

Meanwhile, broader industry standards are evolving. The U.S. National Institute of Standards and Technology (NIST) published draft updates to federal post-quantum cryptography standards in June 2026. These updates introduce quantum-resistant algorithms aimed at improving identity verification and authentication, signaling a wider shift toward preparing for quantum threats across sectors.

These developments shows the growing momentum behind upgrading security protocols before quantum computers become capable of undermining current systems.