BlackRock, the world's largest asset manager with over $15 trillion in assets under management, has weighed in on the ongoing debate surrounding quantum computing's potential threat to cryptocurrency — and its assessment is notably optimistic.

In a newly published report titled Quantum Computing and Blockchains, BlackRock argues that upgrading existing cryptographic systems to quantum-resistant standards is a significantly more manageable task than constructing a functional quantum computer capable of breaking such cryptography.

"In our view, PQ migration for cryptocurrencies is eminently addressable from a technical standpoint, and the key challenge is one of timely coordination and implementation," the report stated.

The cryptocurrency community has long expressed concern over hypothetical advances in quantum computing that could eventually compromise Bitcoin's cryptographic foundations. These concerns extend beyond crypto: in 2024, the U.S. National Institute of Standards and Technology finalized its first set of post-quantum cryptography standards, signaling that governments and traditional financial institutions are also preparing for the transition. In response, some developers — including Bitcoin contributors — have begun preparing for a post-quantum future by testing quantum-resistant signatures on live sidechains. Quantum computers currently exist but remain error-prone, and no machine capable of breaking Bitcoin's cryptography has yet been built. Bitcoin remains the largest computer network in existence.

BlackRock has significant exposure to the crypto sector, having launched spot Bitcoin and Ethereum exchange-traded funds in 2024. The firm's Bitcoin ETF recorded the most successful launch in the history of the ETF industry. BlackRock CEO Larry Fink has described Bitcoin as "digital gold" and an "international asset," and has discussed how crypto networks can facilitate the tokenization of assets more broadly.

Separately, Michael Saylor announced that Strategy, BlackRock, Fidelity, and Coinbase are pledging $15 million to support open-source Bitcoin development "for the decades ahead."

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BlackRock's Assessment of Bitcoin's Quantum Resilience

According to the report, while technical solutions exist for protecting Bitcoin against quantum computers — and the upgrade process itself is technically straightforward — coordination presents the greater difficulty, given Bitcoin's decentralized, consensus-driven development model.

BlackRock noted that approximately 35% of circulating Bitcoin supply is potentially vulnerable to certain types of attacks due to exposed public keys, and that 11–19% may be permanently lost regardless of any migration effort.

Alongside Coinbase, Fidelity Digital Assets, and Block, BlackRock announced the formation of a new Bitcoin Security Consortium aimed at funding engineers engaged in open-source work supporting proposals such as BIP-360, which would introduce quantum-resistant transaction types to the Bitcoin network.

The report acknowledged that while BIP-360 represents a credible and well-designed component of a broader solution, BlackRock stopped short of calling it a definitive answer. The firm's involvement reflects a shift in how major institutional players are engaging directly with open-source protocol development, an area historically driven by independent contributors and volunteer maintainers. Nevertheless, the firm concluded that Bitcoin and other cryptocurrency networks hold the advantage over quantum threats.

"That said, it is a much less daunting task to upgrade current cryptographic systems (including Bitcoin, Ethereum, and others) to a quantum-secure standard than it is to build a CRQC from where quantum computing progress stands today," the report noted.

"Thus, advantage remains decidedly with the defense, at the current juncture."

This article was originally published by Bitcoin Magazine and written by Mathew Di Salvo.