Coinbase to Build Quantum-Resistant Crypto Custody System

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Crypto exchange Coinbase revealed by September 22 that it is developing a crypto custody system capable of supporting any post-quantum signature scheme blockchains may adopt in the future, in preparation for the risk of quantum computers cracking encryption. Yehuda Lindell, the company's head of cryptography, explained this in a video interview with the Mara Foundation. The company is upgrading its current custody infrastructure, which uses multi-party computation, so that it can withstand attacks by quantum computers, and is also considering an alternative approach using specialized devices called hardware security modules in case a signature scheme is adopted that multi-party computation cannot handle. According to the Mara Foundation, the company protects roughly 250 billion dollars' worth of digital assets centered on this system. On July 23, Coinbase explained on its official blog that its current key management system, CoreKMS, protects about 99.9 percent of its custodied assets, and that it is also developing a quantum-resistant version, PQ-CoreKMS, with plans to build an automated infrastructure within one year that can securely sign while distributing keys across multiple locations. Over the following two to three years, it aims to develop multi-party computation that does not require generating a complete private key even for quantum-resistant signatures.

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