U.S. funds $300M quantum hardware as Bitcoin and Ethereum aim for quantum‑resistant upgrades by 2029

Quantum race begins

Bitcoin and Ethereum developers are accelerating work to protect their networks from a future quantum computer that could break the cryptography used in wallets. At the same time, the U.S. Commerce Department has approved up to $100 million for each of three quantum‑computing companies to help build larger, fault‑tolerant machines.

Key numbers

• U.S. funding: up to $100 million each for Rigetti, D‑Wave and Quantinuum (total $300 million).
• Ethereum deadline: December 2029 to make the base layer quantum‑resistant.
• Bitcoin proposals: BIP‑360 and BIP‑361, with many experts citing 2029 as the window for a migration path.
• Google estimate: breaking 256‑bit elliptic‑curve cryptography would need fewer than 1 200 error‑corrected qubits.
• IBM target: a fault‑tolerant machine (Starling) with 200 logical qubits in 2029.

U.S. funding for quantum hardware

The Commerce Department finalized a CHIPS Act award that gives up to $100 million to each of Rigetti, D‑Wave and Quantinuum. The money is meant to scale hardware, manufacturing and error‑correction systems needed for larger, fault‑tolerant quantum computers. The department also took minority equity stakes in the three firms.

Ethereum’s quantum‑resistance deadline

Ethereum’s protocol team has set a self‑imposed deadline of December 2029 to make the base layer quantum‑resistant across execution, consensus and data. The team is preparing for a “Q‑day” that could arrive as early as 2030.

Bitcoin’s migration proposals

Bitcoin developers are working on two improvement proposals. BIP‑360 proposes a post‑quantum output type, while BIP‑361 outlines a phased migration away from today’s ECDSA and Schnorr signatures. Researchers note that many Bitcoin addresses already expose public keys, including an estimated 1 million BTC linked to the creator Satoshi Nakamoto. BIP‑361 suggests eventually restricting legacy signatures, which could strand coins that are not moved.

Confirmed facts

• The Commerce Department awarded up to $100 million each to Rigetti, D‑Wave and Quantinuum.
• Ethereum aims for a quantum‑resistant base layer by December 2029.
• Bitcoin’s BIP‑360 and BIP‑361 are being developed to enable a post‑quantum migration.
• No quantum computer capable of breaking current cryptography is expected before 2029.
• Google’s estimate of <1 200 error‑corrected qubits for a 256‑bit elliptic‑curve attack.
• IBM plans to deliver a 200‑logical‑qubit machine (Starling) in 2029.

Open questions

• Exact timeline for when fault‑tolerant machines will reach the size needed to threaten crypto is uncertain.
• How long it will take for all Bitcoin wallets and Ethereum applications to transition to new signature schemes after the base‑layer upgrades.

Implications for crypto

Preparing now reduces the risk that assets could become vulnerable if a powerful quantum computer appears. For Bitcoin, exposed public keys mean some coins could be stranded if owners do not migrate. For Ethereum, a fixed deadline gives a clear target for the network’s upgrade path.

Next steps

• Quantum firms will use the U.S. funds to develop larger, error‑corrected machines through 2029.
• Ethereum’s team will continue work to meet the December 2029 deadline.
• Bitcoin developers will advance BIP‑360 and BIP‑361 and encourage users to move funds before legacy signatures are restricted.

Sources

• CoinDesk