Coinbase Urges Early Bitcoin Planning as Post-Quantum Shift May Take Years

Coinbase urged early preparation for Bitcoin’s transition to post-quantum security, warning that the process could take years and affect custody systems holding approximately 5% of all existing BTC.

The company outlined technical considerations for the transition, including flexible Bitcoin output designs such as BIP-360, also known as P2MR, and P2TRv2. These designs could provide options for moving from current signature systems to methods intended to withstand future quantum-computing threats.

Coinbase also proposed a phased migration that would support classical and post-quantum signature mechanisms during the changeover. The approach would allow existing systems and newer security methods to operate during the transition.

The company said questions involving dormant funds, lost private keys and wallets that do not migrate should be handled separately from the broader technical process. Keeping those issues distinct could help prevent them from delaying the network’s security migration.

The recommendations add to Coinbase’s broader post-quantum custody planning, as Bitcoin developers and custodians consider how assets can move to quantum-resistant signing methods.