BlackRock published a report this week arguing that upgrading cryptocurrency networks to quantum-resistant cryptography is a simpler engineering problem than building a functional quantum computer capable of breaking that cryptography. The asset manager, which debuted the most successful Bitcoin ETF in history in 2024, also joined Coinbase, Fidelity Digital Assets, and Block in a new $15 million Bitcoin Security Consortium to fund open-source development including the BIP-360 proposal.
The quantum threat, in context
BlackRock's report, titled 'Quantum Computing and Blockchains,' acknowledges that about 4.5 million BTC — roughly 35% of the circulating supply — is potentially vulnerable to certain quantum attack types due to exposed public keys. But the report also notes that 11-19% of that supply may be permanently lost regardless of any migration, meaning the actual at-risk figure is lower. The key challenge, BlackRock writes, isn't technical feasibility but timely coordination and implementation across the ecosystem.
Quantum computers exist today, but they make mistakes and cannot break Bitcoin's cryptography. The report describes BIP-360 as a credible, well-designed piece of a larger puzzle, though it stops short of calling it a complete solution. Bitcoin developers are already testing quantum-resistant signatures on live sidechains.
$15 million for open-source Bitcoin development
The newly formed Bitcoin Security Consortium brings together BlackRock, Coinbase, Fidelity Digital Assets, and Block. The group has pledged $15 million to support open-source Bitcoin development, with a focus on proposals like BIP-360. The consortium's formation signals that major financial institutions are taking the long-term security of Bitcoin's cryptography seriously, even if the immediate threat remains theoretical.
BlackRock CEO Larry Fink has previously called Bitcoin 'digital gold' and an 'international asset,' and has discussed tokenization. The firm manages over $15 trillion in assets.
What comes next
The consortium's funding will go toward development and testing of quantum-resistant upgrades. BIP-360 is one candidate, but BlackRock's report makes clear it's not the final answer. The real work — coordinating a global network of miners, node operators, and users to adopt new cryptographic standards — hasn't started yet. That coordination problem is the one BlackRock says is harder than the code itself.
