anchorage.com
Anchorage Digital has outlined a plan to prepare institutional crypto custody for future quantum computing threats. The federally chartered digital asset bank is already testing new cryptographic tools and upgrading its internal systems. It is also preparing ways to move client assets when blockchain networks adopt quantum-resistant standards.
The company said clients do not need to take immediate action. Its current approach focuses on keeping public keys hidden where possible, limiting address reuse and building systems that can quickly switch to stronger cryptography.
Hash-Based Bitcoin Addresses Limit Key Exposure
Anchorage uses hash-based Bitcoin addresses that do not reveal a public key until funds are spent. It also follows Bitcoin address-reuse practices designed to keep more client holdings in this protected state.
Quantum computers could eventually use exposed public keys to calculate private keys through algorithms such as Shor’s algorithm. Anchorage said this makes digital signatures a larger concern than Bitcoin mining or hashing. Co-founder and CEO Nathan McCauley said:
“Quantum isn’t a moment, it’s a migration.”
Anchorage Tests New Cryptography in Production
Anchorage has deployed quantum-resistant transport security across parts of its internal systems. It is also running post-quantum algorithms in production environments and benchmarking four NIST-finalized post-quantum signature algorithms, as well as additional candidates.
Its hardware security module architecture allows cryptographic algorithms to be upgraded without rebuilding the full custody system. Anchorage said this should help it move client holdings quickly once Bitcoin or another network adopts a post-quantum upgrade.
The company is also developing new security hardware and migration tools. These systems are intended to reduce disruption when institutions need to move assets to quantum-resistant addresses.
Research Targets Legacy Bitcoin Holdings
Anchorage researchers have proposed a system called Post-Quantum Turnstile for moving legacy Bitcoin holdings to new cryptographic keys. The design uses zero-knowledge proofs, so owners can prove control of older credentials without exposing private or public key material.
That refers to Bitcoin held in older hash-protected formats that may need a safe migration path once networks adopt post-quantum signatures. It has also released open-source code for SQIsign, a post-quantum signature scheme with smaller signatures that may be useful for blockchain transactions.
Anchorage plans to continue developing post-quantum smart contracts, stablecoins, and blockchain migration systems. The next workstreams include post-quantum blockchain architectures, smart contracts, stablecoins and migration frameworks for legacy assets.
