BitGo Launches Quantum Protection Tools for Institutional Bitcoin Wallets

BitGo announced Thursday it is rolling out new security tools designed to help institutions manage exposure to future quantum computing threats across Bitcoin wallets.

New Tools Target UTXO-Based Wallets

The company said the tools will help institutions “assess, manage, and reduce quantum-related exposure” across UTXO-based Bitcoin wallets. Nearly all Bitcoin wallets rely on Unspent Transaction Outputs, individual pieces of bitcoin held within a wallet, and managing quantum risk in this structure is more complex than it might seem. BitGo said the launch builds on its existing multi-signature security architecture, adding operational tools for managing key exposure and improving how UTXOs are handled.

Patent-Pending Method Groups UTXOs by Address

Among the tools set to roll out in the coming weeks is a method, for which BitGo has filed a provisional patent, that groups and prioritizes UTXOs by address to cut down on risks tied to partially spent funds. The company noted this approach doesn’t cover address types that expose a public key upfront, such as Taproot or Pay to Public-Key, which will need separate protections.

Industry Grows More Focused on Quantum Risk

BitGo co founder and CEO Mike Belshe said the safest key is one whose public key has never appeared onchain, and that the new tools give institutions a practical way to reduce exposure while still relying on multi-signature security. Last month, Coinbase’s Independent Advisory Board on Quantum Computing and Blockchain reported that roughly 7 million bitcoin sit in addresses that could be vulnerable to a future quantum attack. Belshe said institutions don’t need to wait for an actual quantum event before taking action, and should start hardening wallet operations now.