Coinbase is developing security measures to protect digital assets against potential threats from quantum computers. The exchange currently manages approximately $250 billion in assets for institutional clients such as BlackRock.
The company is focused on adapting its custody infrastructure to support various post-quantum signature schemes. Yehuda Lindell, head of cryptography at Coinbase, noted that the firm is preparing for different outcomes across multiple blockchain networks.
The transition poses challenges for Multi-Party Computation (MPC), a method currently used to secure keys by splitting them into shares. Experts are concerned that future hash-based signature schemes may not be compatible with existing MPC protocols.
To address potential incompatibility, Coinbase is researching a fallback architecture using programmable Hardware Security Modules (HSMs). These modules would store and assemble encrypted keys within physically secure data centers.
While the timeline for completing these security measures remains uncertain, the company aims to build an agnostic system capable of supporting any cryptographic standard that Bitcoin or other networks might eventually adopt.
