Coinbase develops post-quantum custody architecture for Bitcoin

Coinbase is designing a custody system capable of supporting various post-quantum signature schemes for Bitcoin, according to Chief Cryptographer Yehuda Lindell. As the industry has yet to determine which post-quantum standards will be adopted, Coinbase is moving away from traditional multi-party computation (MPC) due to compatibility challenges with certain signature types. Instead, the exchange is developing a backup architecture centered on programmable hardware security modules (HSM), where private keys are encrypted with post-quantum cryptography and assembled only within physically secure hardware.