Banks Invest in Bitcoin Custody Despite Looming Quantum Security Threat

Banks are increasingly buying up Bitcoin vaults, but a looming quantum security threat may be hiding inside.

The world's largest custodian, BNY, announced in May that it would offer Bitcoin and Ethereum custody in Abu Dhabi, while Standard Chartered confirmed its full acquisition of Zodia Custody with an expected closing date by the end of August.

However, a new report from Taurus, a Swiss digital asset technology firm backed by Deutsche Bank, warns that every custodian on the market today remains exposed to a future quantum transition and may face structural limits when blockchains migrate to quantum-resistant signatures.