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BlackRock and Coinbase Back Bitcoin Fund Against Quantum Risk

The consortium, which includes BlackRock, Coinbase, and Fidelity, wants to prepare Bitcoin for a possible quantum threat. The funding will go toward security research, BIP 360, and other post-quantum solutions.

By Mike Hesp
• 2 min read
BlackRock and Coinbase Back Bitcoin Fund Against Quantum Risk

Key Takeaways

  • Nine companies, including BlackRock and Coinbase, are forming a consortium that will put $15 million into Bitcoin security research and open-source development.
  • The initiative is focused on preparing Bitcoin for quantum risk and publishing updates on its security status.
  • The contribution breakdown is still unclear, while Galaxy separately announced $5 million for quantum-resistant security projects.

Nine companies have come together to form a consortium that will commit $15 million (€13.1 million) over the next three years to Bitcoin security research and open-source development. The group includes BlackRock, Coinbase, Strategy, Anchorage Digital, ARK Invest, Block, Blockstream, Fidelity Digital Assets, and Galaxy. Its main goal is to help Bitcoin prepare for a future in which quantum computing could become a real security concern.

Focus on Quantum Threats

The consortium plans to publish updates that show where Bitcoin security work stands for investors and the wider public. The $15 million (€13.1 million) will not be pooled and handed out by the group itself. Instead, each member will decide on its own which developers, researchers, or organizations to support. According to BlackRock executive Robert Mitchnick, Bitcoin Core developers are already doing important work, and the consortium wants to add more funding to strengthen Bitcoin’s long-term security.

The announcement does not break down individual contributions, identify the first recipients, or clarify how much of the total is fresh capital. That leaves the near-term impact of the effort somewhat unclear.

What This Means for Bitcoin

For Bitcoin, quantum security is still mostly a technical challenge that will require coordination across the ecosystem. Quantum computers capable of breaking Bitcoin’s cryptography do not exist yet, but developers are already thinking through possible defenses. Any shift to new cryptography would affect not just the software itself, but also wallets, exchanges, miners, and users, and the transition could take years.

The community is already discussing several proposals, including BIP 360, which would add a new output type designed to reduce exposure of public keys. Other ideas include post-quantum signature schemes and ways to handle coins stored in older addresses that are already exposed. According to CryptoQuant research, roughly 6.9 million bitcoin could be at risk if sufficiently powerful quantum computers ever become a reality.

Broader Security Push Is Growing

Galaxy also announced a separate $5 million (€4.4 million) effort this week focused on quantum-resistant signatures, wallet migration tools, and security audits. The consortium did not say whether that amount is part of the broader $15 million (€13.1 million) total. Mike Schmidt, executive director of the Bitcoin foundation nonprofit Brink, is coordinating the consortium’s work on a volunteer basis.

BlackRock's involvement reflects the broader institutional appetite for Bitcoin, while Project Eleven previously developed a recovery tool for a scenario in which quantum attacks could one day forge signatures.

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