Coinbase, BlackRock, Strategy and six other major Bitcoin investors and infrastructure firms have launched an industry consortium pledging a combined $15 million over the next three years to support developers working on the cryptocurrency’s long-term security, including protection against future quantum computing threats.
The group, called the Bitcoin Security Consortium, also includes Anchorage Digital, ARK Invest, Block, Blockstream, Fidelity Digital Assets and Galaxy. It will be coordinated by Mike Schmidt, executive director of Bitcoin developer nonprofit Brink, who will serve as a volunteer.
The consortium said members will fund Bitcoin developers, researchers and organizations independently rather than contribute to a shared pool of money. It added that the group would not advocate for specific changes to Bitcoin’s software or represent the network’s decentralized developer community.
The initiative comes as researchers and companies prepare for advances in quantum computing that could eventually undermine the cryptographic systems used to secure Bitcoin transactions.
Bitcoin relies on elliptic curve cryptography to verify ownership of digital wallets and authorize transactions. While current quantum computers are not capable of breaking those systems, researchers have warned that more powerful machines could eventually derive private keys from public ones, potentially exposing funds.
The consortium plans to support research into post-quantum cryptography, a new generation of encryption methods designed to withstand attacks from quantum computers.
ARK Invest estimated earlier this year that about 35% of all bitcoin is held in addresses that could be vulnerable to future quantum attacks, while researchers at Project Eleven have suggested that a quantum computer capable of threatening Bitcoin’s cryptography could emerge as early as 2029.
Because changes to Bitcoin’s core software require broad agreement across developers, miners, wallet providers and exchanges, any transition to quantum-resistant cryptography is expected to take years.
“As long-term holders, we have every incentive to see Bitcoin remain secure for generations. Funding the people who do this work, and helping inform the conversation around it, is a natural way for us to contribute,” Strategy Chief Executive Phong Le said.
BlackRock said the initiative would provide additional financial support for developers maintaining Bitcoin’s core software.
“Bitcoin Core developers do incredibly important work, and we’re pleased that our firm and the others in this group will now be making significant additional funding available to support Bitcoin’s long-term security needs,” said Robert Mitchnick, BlackRock’s global head of digital assets.
Separately, Galaxy this week launched its own Bitcoin Quantum Readiness Initiative, committing up to $5 million in grants for developers working on post-quantum cryptography and establishing a Quantum Advisory Council with academics from the University of Calgary and Boston University.
“There’s a gap between the quantum computing world, which is moving fast, and the Bitcoin development world, which is just beginning to engage with post-quantum cryptography in earnest,” Galaxy’s head of research Alex Thorn said. “Galaxy’s role is to bridge that gap through research that makes the threat legible to investors and policymakers, as well as grants that fund the developers doing the hardest technical work.”
Galaxy did not say whether its separate $5 million commitment is included in the consortium’s combined $15 million pledge.
“As leaders in the digital assets space, we believe it’s important that we help be part of the solution to any potential threat quantum computing poses to Bitcoin,” Galaxy CEO Mike Novogratz said. “This initiative reflects that commitment, creating practical steps to research, fund and support the work that keeps Bitcoin secure for the long run.”
The consortium said it plans to publish updated research and educational material on Bitcoin security in the coming months.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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