Transactions using post-quantum signatures on institutional custodial infrastructure were successfully executed by BitGo on Ethereum’s test chain, the Sepolia Network. As BitGo explained on May 26th, this will be the first demonstration of its kind conducted by a regulated administrator.
BitGo, one of the world’s largest Bitcoin (BTC) and digital asset custody companies, developed the test in collaboration with Silence Laboratories, a company specializing in cryptography, to provide a post-quantum signature scheme that combines the following mechanisms:
- The first one is ML-DSA-44a variant of the ML-DSA signature scheme (based on lattices, which are mathematical structures that cannot be resolved efficiently by known quantum algorithms), was standardized by the National Institute of Standards and Technology (NIST) in 2024.
- The second is MPC (multipart computing).a scheme that distributes the management of private keys among multiple administrators without anyone having complete access to the private keys. This is the central mechanism that enables regulated institutional custody.
According to the statement, the technical challenge was to combine both mechanisms: migrate BitGo’s signature scheme to one that is resistant to quantum attacks; without breaking the distributed control of keys that enables storage.. The transaction was executed during a private conference on May 23rd.
But the test was done in Sepolia. testnet There are no real assets or Ethereum mainnet loading requirements.
Why did you choose Ethereum for post-quantum testing?
Although BitGo’s May 26 statement did not make it clear, we can infer the underlying reason from BitGo’s technical documentation.
According to their own documentation, “most UTXO-based blockchains, such as Bitcoin, natively support multi-signature wallets,” while “all account-based chains, such as Ethereum, support MPC.”
This test required accurate demonstration of post-quantum integration within the MPC (rather than multi-signature) scheme; Ethereum was a technically appropriate environment to do that.
The May 26 release reinforces this interpretation, explaining that “live simulated transactions demonstrated how post-quantum signatures can be incorporated into institutional portfolio workflows while preserving the benefits of MPC, including distributed key management, policy enforcement, and operational separation of duties.”
A different technical approach would have been required for Bitcoin, where institutional management at BitGo primarily operates with multi-signatures.
Companies move forward with post-quantum research
The BitGo demo doesn’t stand alone. Fireblocks, one of the leading providers of institutional storage infrastructure, declared the post-quantum transition: Post-publication strategic priorities paper From Google Quantum AI.
Similarly, Dfns Labs, an infrastructure provider for other institutions, is also working on quantum computer-resistant signatures with support from NIST, the company reported.
Meanwhile, Anchorage Digital, a regulated facility protection agency, shared academic research last March with the following mechanism: Post-quantum transition of the Bitcoin network using zero-knowledge (ZK) proofsdeveloped by our own researchers. Although Anchorage’s proposal is not aimed at protecting customers’ funds, it is another relevant precedent in the field delving into post-quantum technologies.
A step in the discussion where there is no consensus within the community
The immediate implication for companies with institutional custody of Bitcoin (BTC) and other crypto assets is that the infrastructure securing their funds now has a documented path to a post-quantum scheme without having to relinquish existing operational controls.
The demonstration comes as the community debates whether the timeline for quantum computers related to cryptography is accelerating. Mikhail Lukin, a Harvard University researcher and co-founder of the Harvard Quantum Initiative, estimates that: These machines could be available “at least in some form” by the end of this century (Prospects 5 to 10 years ahead than previous consensus).
Lukin’s vision aligns with what companies like Google, Cloudflare, and Grayscale are planning. Transition to post-quantum structure by 2029.
In contrast, other voices within the ecosystem, such as cryptographer Adam Back, co-founder of Blockstream, argue that: That risk is at least 10 years away.
In this context, institutional supervision begins to document its first concrete technical steps. A question left open by this demonstration is how long it will take to test a testnet and deploy a production environment at a regulated scale.
(Tag Translation)Bitcoin (BTC)
