Tldr:
- Cryptocurrency companies are upgrading wallets to post-quantum MPC signatures before blockchain protocols make the same shift.
- NIST-certified algorithms such as ML-DSA are evaluated for distributed signature compatibility across wallet systems.
- Organizations with existing MPC infrastructure can move to quantum-resistant wallets with a simple code upgrade.
- Wallet-level upgrades alone cannot fully protect users if the underlying blockchain networks do not follow protocol changes.
Quantum wallets have become a priority for cryptocurrency companies as a threat Quantum computing Approaching. Companies are now upgrading their wallet infrastructure faster than blockchain networks can update their underlying protocols.
The concern stems from estimates that a “Q-Day” scenario could arrive as early as 2030. A recent report from Project Eleven warns that quantum computers could break the foundations of cryptography that secure trillions of digital assets within four to seven years.
Wallet-level promotions drive charging
Cryptocurrency infrastructure companies are not waiting for blockchain-level changes to roll out quantum-resistant protections. Silence Laboratories recently added support for multiparty distributed computation (MPC) signatures using ML-DSA.
This is an encryption algorithm chosen by the National Institute of Standards and Technology (NIST). The company spent six months evaluating three NIST-certified algorithms: SPHINCS+, Falcon, and CRYSTALS-Dilithium.
However, not all algorithms are suitable for every use case. Jay Prakash, CEO of Silence Laboratories, addressed this directly, saying: “Not all SPHINCS+, Falcon, and CRYSTALS-Dilithium will meet the MPC suitability criteria – whether they support efficient signing of distributed transactions.”
Fragmentation across chains is also a factor, with each network optimizing for different standards, he added. This complexity makes it difficult to achieve a one-size-fits-all approach.
The approach used by Silence Laboratories creates private key shares across isolated nodes. The signature is then co-produced without reconstructing the full key.
This method protects against quantum attacks while remaining compatible with existing MPC infrastructure. Prakash noted that organizations have already adopted this model: “Whether it’s a partner like Bitgo Or a bank building a digital assets practice, they all realize that the keys can’t be in one place.”
Prakash assured that the transition process will be smooth for end users. Whether you use MetaMask or another wallet interface, users will not notice any change. The upgrade is done entirely at the infrastructure level.
As he explained: “Any bank or custodian with an existing MPC infrastructure can now move to an MPC-based post-quantum wallet, without changing their infrastructure. It’s a code upgrade.”
Alternative approaches and remaining gaps
Other developers are exploring protocol-adjacent solutions rather than pure wallet-level fixes. The developers behind Postquant Labs are building Quantum resistance Signatures are on top of Bitcoin using a separate smart contract layer.
This completely avoids changes to the underlying Bitcoin protocol. StarkWare researcher Avihu Mordechai Levy has proposed replacing Bitcoin’s elliptic curve cryptography with hash-based signatures that work within the existing network’s rules.
However, this proposal is described as a last resort option and not a scalable solution. Implementing it on a large scale can also be expensive.
Meanwhile, a researcher recently cracked a 15-bit elliptic curve encryption key using a quantum computer and a variant of Shor’s algorithm. Project Eleven awarded a “Q-Day” prize of one bitcoin to the researcher for this demonstration.
Coordination between wallet providers and Blockchain networks It remains a major challenge. Prakash was direct about the limits of wallet-only repair: “If wallets are upgraded beyond quantum and chains aren’t upgraded, it won’t work.”
The timetable pressure is pushing companies to act now, even though the true quantum threats have not yet been fully realized. User behavior and coordination across the ecosystem remains the weakest link in the rollout.
