BlackRock, Coinbase, Strategy in a new group pledging $15 million to prepare Bitcoin for quantum threats
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Summary
A newly formed Bitcoin Security Consortium, consisting of nine firms including BlackRock, Coinbase, Strategy, Anchorage Digital, ARK Invest, Block, Blockstream, Fidelity Digital Assets, and Galaxy, has pledged a combined $15 million over three years to fund Bitcoin security research and open-source development. This collaborative effort aims to support initiatives that enhance Bitcoin’s long-term safety, with a particular focus on preparing the cryptocurrency for potential future threats from advances in quantum computing.
The consortium will not centrally manage the funds or influence Bitcoin governance or protocol decisions. Instead, each member will independently decide how to allocate their contributions to developers, researchers, or organizations working on Bitcoin security. BlackRock’s digital assets head, Robert Mitchnick, emphasized the importance of Bitcoin Core developers and the need for increased financial support to secure Bitcoin’s future.
Why it matters
Among the key areas of research the consortium supports are developments in post-quantum cryptography, as the emergence of quantum computers capable of breaking Bitcoin’s current cryptographic protections is a potential future risk, though such computers do not yet exist. Developers are working on solutions like BIP 360, which introduces new transaction outputs to reduce exposure of public keys, as well as other post-quantum signature schemes and strategies to address older Bitcoin addresses that could be vulnerable.
The consortium’s launch coincides with Galaxy's recent announcement of a separate $5 million initiative focused on quantum-resistant signatures, wallet migration tools, and security audits, although it is unclear if this funding is part of the consortium’s total pledge. According to CryptoQuant research, about 6.9 million bitcoins could be at risk if quantum computing technology advances sufficiently, underscoring the importance of proactive, coordinated research and development across the decentralized Bitcoin network. Mike Schmidt, executive director of the Bitcoin developer funding nonprofit Brink, will volunteer to coordinate the consortium’s efforts.