Why institutional crypto custodians face a harder quantum crisis than individual holders
Bitcoin developers weigh quantum upgrades as "bunker mode" debate heats up
Bitcoin developers are currently debating how and when the network should prepare for the threat of quantum computing. At the same time, some in crypto are calling for holders to move into "bunker mode" — locking away funds before advances in AI or quantum computing make it possible to crack wallet keys.
But while individual holders face the simpler task of moving their coins to a new wallet, banks and crypto custody firms are dealing with a far more complex problem: upgrading their entire key management, approval, and audit infrastructure before quantum computing makes current encryption useless.
Custody integrations targeted for early 2027
Project Eleven, a company building tools to protect crypto from future quantum attacks, and Quantus, a privacy-focused proof-of-work blockchain, announced plans to integrate Quantus with Project Eleven's institutional custody platform. The integration aims to launch in the first quarter of 2027.
Once live, the system will let institutions manage Quantus keys and approve transactions using hardware security modules, internal policies, and audit systems — the same controls they rely on for existing cryptocurrencies.
Why a multi-chain quantum transition is tricky for institutions
Unlike individual holders who can simply move their funds, institutional custodians manage assets across many blockchains. Bitcoin, Ethereum, and other networks are unlikely to settle on the same quantum-resistant signature scheme or the same migration timeline. A bank holding several different digital assets may end up having to accommodate multiple new forms of cryptography simultaneously, all while preserving the controls that govern who can approve, sign, and audit transactions.
Alex Pruden, co-founder and CEO of Project Eleven, told CoinDesk that such a transition could become a roadblock to institutional adoption of cryptocurrency. However, he added that institutions are already preparing for post-quantum transitions outside of the blockchain space.
AI is accelerating the quantum timeline, according to Quantus CEO
Christopher Smith, co-founder and CEO of Quantus, said AI is "accelerating everything, including both quantum hardware and quantum software." He described a "tail risk" of a surprise quantum breakthrough, noting that the exact timing of when quantum computing will become a real threat to current encryption remains uncertain.
What industry leaders recommend
Despite the uncertainty around when quantum computing will pose an immediate threat, industry leaders say institutions should begin preparing migration plans now. The goal is to avoid an emergency transition and meet their fiduciary responsibilities to clients.
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.