Coinbase Calls for Bitcoin Security Upgrades Ahead of Quantum Computing Risks

Highlights:

• Coinbase warns that future quantum computers could threaten Bitcoin security and urges developers to prepare early.
• The exchange supports gradual security upgrades that protect Bitcoin users without making transactions more expensive or complicated.
• Coinbase is reviewing new security proposals while raising concerns about older wallets and Bitcoin that owners cannot access.

Crypto exchange Coinbase is urging Bitcoin developers to prepare the network for future quantum-computer threats. The company warns that upgrading Bitcoin’s security could take years. It also wants the changes to protect everyday users and large institutional holdings. Coinbase says it currently holds about 5% of all Bitcoin in existence.

In an official statement published on October 13, Coinbase’s Shashank Agrawal outlined several options for improving Bitcoin’s quantum security. The company has not proposed a final upgrade. Instead, it wants developers to examine different approaches before powerful quantum computers become a real threat.

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

Why Coinbase Wants Bitcoin to Prepare for Quantum Computing

Bitcoin uses digital signatures to prove that someone has permission to spend their coins. But powerful quantum computers could eventually break this security. As a result, some Bitcoin funds could be at risk of theft.

It remains unclear when computers capable of such attacks will become available. Still, Coinbase believes waiting until the threat arrives could leave too little time to upgrade Bitcoin and move funds safely. The exchange wants any new security system to work within Bitcoin’s limited block space. It should also let ordinary users manage their wallets without making transactions too expensive or hard to verify. 

Coinbase pointed to two proposals, P2MR under Bitcoin Improvement Proposal 360 (BIP-360) and P2TRv2. Both could allow developers to introduce or replace quantum-resistant signature methods as technology improves. However, neither proposal has been selected as Bitcoin’s final solution.

Coinbase Supports Gradual Changes to Bitcoin Wallet Security

Coinbase wants developers to improve Bitcoin’s security step by step instead of replacing all existing signatures at once. One option would allow users to make transactions using either current digital signatures or new ones designed to protect against quantum attacks.

This approach would give wallet providers time to update their systems. Users could also move to stronger security while developers decide when to limit older signature methods. Meanwhile, Coinbase wants researchers to check how these changes could affect transaction sizes, fees, and payment verification. The company also wants developers to consider hardware wallets and firms that hold large amounts of Bitcoin.

Coinbase also wants future security upgrades to support multi-party computation (MPC). This method allows several parties to share control over transaction approvals instead of relying on a single person. It can help institutions keep their Bitcoin holdings secure.

Coinbase Raises Concerns Over Older Bitcoin Wallets

Older Bitcoin wallets are another concern. Some have exposed public keys, while others have remained untouched for years because their owners lost access. Even if Bitcoin upgrades its security, these coins could still be at risk from future quantum attacks.

Possible solutions include restricting older transactions or creating ways for legitimate owners to recover their coins. However, Coinbase believes developers should discuss these options separately to avoid delaying work on new security features. The exchange is already preparing its own systems and supporting research through the Bitcoin Security Consortium. In September, Coinbase also helped organize a workshop at Stanford University with Bitcoin developers, cryptographers, and custody experts.

Coinbase has not set a date for the Bitcoin security upgrade. Developers still need to review and test the proposals before the Bitcoin community can agree on any changes.

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A new Google Quantum AI whitepaper has identified approximately 6.9 million Bitcoin $BTC vulnerable to future quantum at-rest attacks.

Around 1.7 million BTC sits in old… pic.twitter.com/pCwKrhXL4e

— BSCN (@BSCNews) March 31, 2026