BlackRock says Bitcoin can outpace quantum computing risks with prompt upgrades

Quantum threat and crypto defense

Concerns have grown within the cryptocurrency community regarding future quantum computers, which, if sufficiently advanced, could theoretically undermine existing cryptographic protections—especially for major assets like Bitcoin. Developers and researchers have responded by experimenting with quantum-resistant signature schemes on specialized sidechains, aiming to prepare for a potential quantum-powered threat.

Quantum computers already exist, but experts highlight that today’s machines are error-prone and fall far short of the computational power required to threaten Bitcoin’s underlying security. In its report, BlackRock noted that the immediate risk is not the technical upgrade itself, but the challenge lies in the timely and coordinated migration to quantum-resistant standards across the decentralized, consensus-driven Bitcoin network.

“In our view, PQ migration for cryptocurrencies is eminently addressable from a technical standpoint, and the key challenge is one of timely coordination and implementation,” BlackRock wrote in its report.

Analysis included in the report stated that around 35% of all Bitcoin currently in circulation may be exposed to potential attacks because their public keys have been revealed, while between 11% and 19% of coins could be permanently inaccessible, regardless of future protocol upgrades.

Mini dictionary: Quantum-resistant cryptography, also known as post-quantum cryptography, refers to algorithms and protocols designed to remain secure even if adversaries have access to powerful quantum computers that could break classical cryptographic methods.

Industry action and BlackRock’s involvement

In 2024, BlackRock entered the digital asset space by launching spot Bitcoin and Ethereum exchange-traded funds. The firm’s Bitcoin ETF achieved the most successful debut in the history of the ETF industry, signaling growing mainstream acceptance of cryptocurrency investments. Larry Fink, BlackRock’s CEO, has described Bitcoin as “digital gold” and an “international asset,” highlighting its potential to transform financial markets through asset tokenization.

Alongside other major industry players such as Coinbase, Fidelity Digital Assets, and Block, BlackRock recently introduced a new initiative called the Bitcoin Security Consortium. This consortium aims to raise and distribute $15 million in funding to support open-source Bitcoin development, particularly for projects exploring ways to secure the network against quantum threats, including support for proposals like Bitcoin Improvement Proposal 360 (BIP-360).

BIP-360 represents a technical solution intended to help Bitcoin transition to quantum-secure cryptographic standards. BlackRock’s report described BIP-360 as a credible step, while noting that comprehensive network defense will require both robust technology and widespread coordination among stakeholders.

“It is a much less daunting task to upgrade current cryptographic systems (including Bitcoin, Ethereum, and others) to a quantum-secure standard than it is to build a CRQC from where quantum computing progress stands today. Thus, advantage remains decidedly with the defense, at the current juncture,” BlackRock’s report stated.

Despite optimism on the technical front, the asset manager cautioned that decentralized governance structures could slow updates, potentially giving adversaries a window of opportunity should quantum computing advance more quickly than anticipated.

BlackRock’s stance and collaborative efforts signal that leaders in traditional and digital finance are monitoring quantum developments closely—and are prepared to take action to preserve the security, stability, and value proposition of the world’s largest cryptocurrencies.