Bitcoin quantum concerns threaten institutional crypto investment case

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Bitcoin quantum threat and investment

Highlights

Uncertainty over Bitcoin's quantum resistance is constraining institutional investment, with calls for a credible roadmap by 2028 and full transition by 2030.
Ripple received final U.S. approval to establish Ripple National Trust Bank, which will manage RLUSD reserves and offer digital asset custody as RLUSD issuance remains under New York regulation.
Circle’s USDC now holds 56% of euro-denominated stablecoin trading in Europe, up from 10% in January, due to EU-led restrictions on USDt.

Quantum timeline sharpens pressure on Bitcoin

As reported by Cointelegraph, Stacks founder Muneeb Ali says uncertainty over Bitcoin’s ability to withstand future quantum attacks is already weighing on institutional appetite for the asset, even if the underlying technology is not yet ready to compromise the network.

Ali says Bitcoin needs a credible roadmap toward quantum resistance, with meaningful progress by 2028 and a full transition targeted for 2030, citing guidance from the National Institute of Standards and Technology. He argues that Bitcoin’s history of slow and contentious upgrades leaves little room for delays, while advances in artificial intelligence could accelerate the timetable.

Even if developers agree on the technical solution, the transition is likely to take years because the network would need to implement the changes and holders would then need time to move Bitcoin into quantum-resistant addresses. Ali says that uncertainty alone can weaken confidence among investors who view Bitcoin as a hedge against currency debasement, and he warns that any breakthrough affecting Bitcoin would likely spread across the broader crypto market.

Regulatory and product shifts reshape crypto finance

Elsewhere in the sector, Ripple has received final approval from the U.S. Office of the Comptroller of the Currency to establish Ripple National Trust Bank, completing the process after conditional approval in December 2025. The federally supervised entity is set to manage reserves for RLUSD, act as a collateral trustee for tokenholders and provide digital asset custody, while RLUSD continues to be issued by Standard Custody & Trust Company under New York state regulation.

In Europe, Circle’s USDC has overtaken Tether’s USDt in euro-denominated stablecoin trading, accounting for 56% of that market, up from 10% in January 2024, according to Kaiko. The report links the shift to exchange restrictions on USDt for European Economic Area users under the EU’s Markets in Crypto-Assets Regulation, while USDC’s euro order books are now roughly 40% deeper, indicating stronger liquidity even though USDT remains larger globally by circulating supply.

VanEck is also broadening Bitcoin’s role in portfolio construction with the launch of the actively managed VanEck Wealth Builder ETF, which mixes stocks, bonds and real assets with a 1% to 5% Bitcoin allocation and targets 2%. The fund gains its Bitcoin exposure through a spot Bitcoin exchange-traded product rather than holding the token directly, reflecting how digital assets are increasingly being folded into mainstream multi-asset investment strategies.

Banks are being urged to strengthen cyber resilience as AI makes attacks larger and more complex, and regulators warn the risk could become systemic for financial infrastructure. In our earlier coverage, we outlined the Bank of England’s push for “bare metal” recovery options so critical banking services can keep running even if primary systems are compromised, alongside broader calls for end-to-end recovery planning across the sector.

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