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Quantum-Proof Wallets Are Coming. Who’s Actually Building Them?
- Jul 28
- 7 min read
Updated: Jul 30
Few are building quantum-ready wallets while most still rely on vulnerable math.
Every public blockchain wallet today depends on math too complex for classical computers to reverse. That reliable gap between public and private keys has made modern wallets secure for years. But that math dates to a time before quantum processors existed.
Quantum machines don’t operate the same way. They tackle mathematical problems using quantum rules rather than brute force. In principle, algorithms like Shor’s can break the cryptography that protects Bitcoin, Ethereum, and most Web3 systems once a capable machine becomes available.
Tech labs have made rapid progress. The University of Science and Technology of China unveiled Zuchongzhi‑3 in early 2025. That 105‑qubit superconducting chip performed a random circuit sampling task 1 quadrillion times faster than traditional supercomputers. At the same time, IBM introduced its Heron processor, part of its Quantum System Two architecture. Heron holds 156 qubits, and IBM claims it reduces error rates up to five times versus earlier designs.
These systems may not yet be able to extract wallet keys. But they mark a turning point: math that once felt future-proof now faces credible threats. Public keys broadcast during transactions remain exposed. Reusing addresses or revealing them becomes a vulnerability once quantum scaling reaches functional maturity.
Most Wallets Still Rely on Math That Quantum Machines Can Crack
The vast majority of cryptocurrency wallets, both hardware and software, still utilize elliptic curve cryptography (ECC). This includes Bitcoin’s secp256k1 curve and Ethereum’s use of ECDSA and Ed25519 across smart contract wallets, multisigs, and rollups.
ECC works today because no classical computer can efficiently solve the discrete logarithm problem it’s built on. But Shor’s algorithm, designed for quantum systems, can break that logic by factoring large primes with enough qubits. That could leave ECC-protected wallets exposed if those machines reach the required scale.
NIST (National Institute of Standards and Technology) started planning for this scenario in 2016. In 2022, it selected four post-quantum algorithms for standardization. Two of them are being finalized for public-key encryption and digital signatures:
CRYSTALS-Kyber for key encapsulation
CRYSTALS-Dilithium for digital signatures
Both are lattice-based, designed to stay secure against quantum threats. Final implementation guidance is expected to be published in 2024–2025. Several blockchain and fintech developers are already testing them in sandboxed settings.
Despite this, none of the major wallet providers such as Ledger, Trezor, BitBox, or Keystone offer post-quantum key support out of the box.
Most still use deterministic derivation paths based on BIP‑32 and BIP‑39, which depend entirely on classical ECC. This includes recovery phrases, derivation trees, and multisig structures. There are no published migration plans from these firms as of mid‑2025.
Some hardware teams have begun testing firmware updates that can handle hybrid key formats or backup methods using lattice-safe entropy. But production-ready tools remain limited to experimental branches and developer betas.
Who’s Actually Building Post‑Quantum Wallet Tech?
While mainstream wallet providers have stayed on the sidelines, a handful of developers and research groups are building tools that can hold up under quantum stress. These efforts are still early, but they exist and they’re evolving outside the spotlight.
QANplatform
QANplatform is developing a hybrid Layer 1 blockchain that supports both traditional and quantum-resistant signatures. It integrates lattice-based cryptographic schemes alongside standard logic, giving developers options while the standards mature. Their testnet launched in 2023, and their roadmap includes support for post-quantum key management and contract authentication.
While QAN is still a niche chain, its direct support for quantum-resistant signing makes it a live test case for broader key migration efforts.
XMSS (eXtended Merkle Signature Scheme) Wallets
XMSS is a hash-based signature scheme recognized by NIST for its quantum resistance. Projects like HQC and SPHINCS+ have explored these schemes, but usability remains a barrier.
Some early-stage wallet prototypes built on XMSS have been released through open GitHub repositories, mostly in academic circles. These include research implementations that can sign messages with a limited number of keys, though practical versions are still missing key features like HD support and mainstream UX.
OpenQuantumSafe + liboqs
The OpenQuantumSafe project is building the foundational libraries needed to test and integrate post-quantum algorithms. Their liboqs library wraps NIST-recommended schemes like CRYSTALS-Dilithium and integrates them with TLS protocols. This toolkit is already being used by institutions to test quantum-safe key exchanges in real-world settings.
Although liboqs is not a wallet by itself, it gives wallet developers a way to start prototyping without reinventing encryption primitives. Some blockchain teams are experimenting with it to evaluate performance and resource demands.
PQCrypto-VPN and OpenSSH Integrations
While not directly wallet-related, post-quantum VPNs and secure shell integrations offer a hint at what widespread cryptographic migration might look like. OpenSSH has already implemented support for hybrid key exchange (ECDH + Kyber), offering insight into how legacy and quantum-safe systems could coexist during transition phases.
This model, which combines classical and quantum-resistant methods, may guide how hardware wallets and multisig protocols adapt over time.
What Migration Might Look Like
If quantum machines mature before post-quantum infrastructure is ready, the clock on crypto key safety could run out quickly. The most exposed wallets will be those that have broadcast their public keys, especially those that reused addresses.
Migrating away from classical keys won’t be seamless. It’ll require coordination between users, wallet providers, node software, and potentially even blockchains themselves.
Here’s what a likely path could include:
1. New Address Types
Quantum-resistant keys require different cryptographic assumptions and longer payloads. Bitcoin and Ethereum may eventually adopt new address formats that support quantum-safe algorithms like Dilithium or Falcon. These addresses will need base layer consensus and wallet-level support.
2. Key Rotation Tools
Wallets may introduce tools that encourage or automate key migration. This could include alerts for known-reused public keys or prompts to move funds to upgraded formats. In the short term, hybrid signing models could allow users to retain backward compatibility while enabling safer practices.
3. Recovery Phrase Upgrades
Seed phrase standards like BIP-39 rely on entropy models tied to classical algorithms. Some developers are experimenting with new derivation schemes that combine classical and quantum-resistant randomness. These aren’t yet finalized, but they will become necessary as entropy needs change.
4. Protocol-Level Support
Blockchains may need to introduce signature verification logic that accommodates new quantum-resistant methods. In Ethereum, for example, this may require precompiles. In Bitcoin, it may call for soft forks similar to Taproot. These changes take time, governance coordination, and rigorous review.
Few tools exist today to make this migration smooth. The wallets that build for this shift early, well before it’s forced, stand a better chance of keeping user funds intact when standards change.
Tokenized Assets May Face a Bigger Risk
Tokenized money market funds, U.S. treasuries, real estate, and other financial products now represent one of the fastest growing categories in Web3. According to rwa.xyz, the total value of tokenized real-world assets surpassed $2.1 billion as of mid‑2025, with BlackRock, Franklin Templeton, Ondo, and Backed leading the field.
What stands out in this development is not just the speed or scale but the security assumptions behind it.
Nearly all of these products are issued on public blockchains like Ethereum and Polygon using classical wallet infrastructure. That includes contract owners, admin signers, and even the custodial wallets holding collateral. In most cases, these keys are tied to ECDSA or EdDSA, which quantum machines can target once they’re powerful enough.
This creates two levels of exposure:
1. Smart Contract Wallets
Many tokenized asset protocols use multisig wallets or upgradeable contracts. The public keys associated with these admin functions are sometimes published on-chain or embedded in contract metadata. This makes them visible regardless of whether they have signed a transaction.
In a quantum threat environment, these exposed keys could become targets. Even without moving funds, an attacker could change permissions or reroute logic if a privileged address is compromised.
2. Custodial Gateways and Transfer Agents
Tokenized securities often require off-chain coordination with transfer agents or custodians. Their wallet keys manage the issuance and redemption of tokenized instruments. If those keys are based on classical encryption and reused across operations, they represent a central point of failure.
For assets that promise compliance, legal finality, and institutional-grade security, the threat of a public key reversal, even if it has not happened yet, may already cross the risk threshold.
As more assets move on-chain, exposure widens. If the infrastructure under those assets doesn’t evolve at the same pace as the financial products being built on top, the mismatch becomes a structural risk.
Final Thought
The cryptography that built this industry won’t carry it forever.
Some are already building the next layer.
Most haven't started.
What happens when the math changes faster than the infrastructure built on top of it?
That’s the question. The time to answer it is now.
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