Crypto Must Go Quantum-Ready: NIST Sets 2035 Deadline, Coinbase Warns of Investment Risks

NIST Sets 2035 Deadline for Post-Quantum Cryptography Migration

In August 2024, the National Institute of Standards and Technology (NIST) finalized its first three post-quantum cryptography (PQC) standards and urged organizations to begin migration immediately. The agency set a 2035 deadline to phase out quantum-vulnerable public-key algorithms from its guidelines.

Coinbase Advisory Board Warns of Investment Risks

"Blockchains, wallet providers, exchanges, and custodians should prepare before urgency arrives, and unresolved public decisions around migration are already deterring some investment."

Coinbase’s advisory board emphasized the need for proactive planning in a recent report, highlighting that delays in post-quantum readiness could impact market confidence and investment flows.

Google Accelerates Quantum-Safe Transition with 2029 Target

In March, Google announced an internal timeline to complete its post-quantum cryptography (PQC) migration by 2029. The company also updated its threat model to prioritize authentication services, signaling a strong commitment to quantum resilience.

Why Google’s Quantum Research Targeted Bitcoin First

Related Reading: Google’s research on quantum computing initially focused on Bitcoin, positioning crypto as a critical test case for real-world quantum risks. The paper, published in April 2026, underscores how quantum threats could impact live networks and real assets.

Full-Stack Migration Challenges Across Crypto Infrastructure

Coinbase’s report outlines the full-stack migration burden, covering:

• Consensus layers
• Execution layers
• Wallets and exchanges
• Custodians and key management systems
• Hardware and firmware

The report warns that hardware-based wallets and hardware security modules require significant time to update. Additionally, many major blockchains have not committed to specific post-quantum signature choices, creating uncertainty.

NIST Defines Crypto-Agility as the Path Forward

NIST defines crypto-agility as the ability to replace and adapt algorithms across protocols, applications, hardware, firmware, and infrastructure without disrupting operations. However, most crypto infrastructure providers are still assessing whether their full stacks can absorb such a transition without operational disruption.

Bitcoin’s Migration Question Remains Open

Coinbase’s paper notes that Bitcoin’s core developers maintain a wait-and-see posture on full migration details. This approach carries costs, including market uncertainty. The report estimates that 13.6 million exposed Bitcoin addresses have public keys already visible on-chain, making them vulnerable to quantum attacks.

A coordinated transition would require several months once a post-quantum path is adopted. The migration question remains unresolved as the community discusses BIP 361, leaving room for other chains, wallets, and infrastructure providers to demonstrate operational seriousness through concrete planning.

Ethereum and Layer-2 Networks Lead Post-Quantum Planning

Coinbase’s report highlights Ethereum’s migration plan and cites layer-2 networks, including Optimism, Arbitrum, and Base, as having announced post-quantum strategies. Optimism has set a January 2036 flag day, after which ECDSA signing keys will lose control of externally owned account assets.

Algorand has executed the first post-quantum transaction on mainnet in 2025 using Falcon signatures, demonstrating practical progress in quantum readiness.

Algorand’s Post-Quantum Surge

Related Reading: Algorand’s native token, ALGO, surged from $0.08 to $0.12 in April 2026 following Google’s spotlight on its real-world post-quantum rollout.

Hardware and Cloud Vendors Prepare for Quantum Transition

Hardware and cloud vendors are actively developing solutions to support post-quantum cryptography, ensuring compatibility with evolving standards. Their role is critical in enabling seamless migration across the crypto ecosystem.