Coinbase urges early preparation because consensus changes and wallet migrations could take years.
Flexible wallet designs could support new signature schemes without complete redesigns.
Custody compatibility and safe signature management remain central technical concerns.
Coinbase is urging developers and custodians to begin Bitcoin post-quantum security preparations before a powerful quantum computer threatens existing cryptography. In an October 13 paper, the exchange said network changes and wallet migrations could take years. Coinbase, which says it holds roughly 5% of existing bitcoin, is also preparing its own custody systems.
Bitcoin post-quantum security needs flexible wallet designs
The company’s technical paper presents seven priorities for community discussion, rather than an agreed upgrade plan. They cover migration timing, wallet architecture, signature choices, implementation quality and institutional needs.
For Bitcoin post-quantum security, Coinbase favors separating the s tructure holding funds from the algorithm authorizing spending. That would allow developers to replace or supplement signature schemes without redesigning the entire output format.
Coinbase, Which Holds About 5% of Existing BTC in Custody, Outlines Bitcoin Post-Quantum Security Recommendations
Coinbase, which holds approximately 5% of all existing BTC in custody, outlined technical considerations for Bitcoin’s transition to post-quantum security. The… pic.twitter.com/9D9aUAXTa2
— Wu Blockchain (@WuBlockchain) October 13, 2026
It identifies P2MR, proposed in BIP-360, and P2TRv2 as promising approaches. These remain designs under discussion, rather than proof that Bitcoin already has comprehensive quantum protection.
Coinbase also describes a possible transition with two alternative spending paths. One would use an existing ECDSA or Schnorr key, while another would use a post-quantum key.
Because either path could authorize spending, retaining a vulnerable classical path would still matter if quantum attacks became practical. Adding an alternative alone would not eliminate that exposure.
Custody requirements shape signature choices and migration
Bitcoin post-quantum security must also work within limited block space and preserve independent verification by full nodes. Coinbase wants evaluations tailored to Bitcoin, including signature size, verification costs and hardware-wallet compatibility.
The paper calls for a stateless option if the network supports stateful signatures. Stateful systems require careful tracking of signing state; accidental reuse can allow forged signatures.
Institutional custody introduces another requirement: compatibility with multiparty computation, or MPC. This distributes signing operations across participants, helping organizations avoid relying on a single complete signing key.
Coinbase says Bitcoin post-quantum security should include at least one viable option with promising MPC compatibility. It also emphasizes reliable implementations across platforms and safeguards against signing randomness failures.
The company treats abandoned and inaccessible coins as a separate governance question. Debate over those holdings, it says, can proceed alongside technical work on new signature support.
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