Banks Invest in Bitcoin Custody Amid Quantum Security Concerns
Major banks are expanding into Bitcoin custody, with BNY and Standard Chartered making significant moves. However, a report highlights that existing custodial architectures face risks from potential quantum computing advancements, which could compromise current cryptographic methods.
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BNY, the largest custodian globally, announced Bitcoin and Ethereum custody services in Abu Dhabi, while Standard Chartered plans to acquire Zodia Custody. This shift indicates a growing focus on digital asset custody among major banks.
A report by Taurus warns that current custody architectures, particularly multi-party computation (MPC) models, may be vulnerable to future quantum computing threats. The US NIST plans to phase out existing signature schemes by 2030, necessitating a migration to post-quantum algorithms.
Yet, custodians deploying these new methods face challenges as existing protocols and networks currently reject quantum-ready signatures. As banks invest billions in custody technology, the question arises whether these systems can adapt to quantum threats while managing existing assets.
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