Galaxy sets up $5 million fund to help shield Bitcoin against quantum computing threats
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Galaxy Digital has established a $5 million Bitcoin Quantum Readiness Initiative aimed at supporting developers working to defend the Bitcoin network from potential future threats posed by quantum computing. The fund will provide grants for projects focused on creating quantum-resistant signature schemes, wallet migration tools, and conducting security audits. Galaxy Digital has also invited other companies to contribute funding and research efforts to hasten the adoption of new cryptographic standards across the Bitcoin ecosystem.
Currently, quantum computers are not advanced enough to break Bitcoin’s cryptography, which secures wallets and transactions using techniques resistant to classical computers. However, experts warn that if quantum computing technology matures to the point of undermining Bitcoin’s cryptographic protections, approximately 6.9 million bitcoins—valued at around $461 billion based on current prices of about $66,800 per bitcoin—could become vulnerable to theft. The initiative recognizes that planning for such a threat must begin early because protocol upgrades to implement quantum-resistant cryptography are expected to be far more complicated and time-consuming than previous Bitcoin upgrades like Taproot.
The urgency of developing quantum-resistant solutions is underscored by recent government actions. U.S. President Donald Trump signed executive orders directing federal efforts to build large-scale quantum computers and protect government systems from quantum attacks. Additionally, the U.S. Commerce Department has pledged over $2 billion to companies advancing quantum computing technology capable of threatening the cryptography underlying not only Bitcoin and Ethereum but also broader internet security. As a result, the Bitcoin Quantum Readiness Initiative reflects a proactive approach in the crypto industry to prepare for potentially transformative quantum computing developments well in advance of their operational impact.