Crypto firms adopt “algorithm-upgraded” quantum-safe wallets, with multiple companies rolling them out to upgrade before the Bitcoin protocol.

According to Decrypt on May 11, multiple cryptocurrency companies are adopting post-quantum cryptography algorithms approved by the U.S. National Institute of Standards and Technology (NIST), upgrading user-facing wallets and custodial infrastructure. The goal is to deploy quantum-safe protections ahead of protocol-layer upgrades on blockchains such as Bitcoin and Ethereum.

Silence Laboratories: ML-DSA-based post-quantum MPC wallets

According to Decrypt, Silence Laboratories has added support for the ML-DSA algorithm to its distributed (multi-party computation, MPC) signing system. ML-DSA is one of the post-quantum cryptography algorithms selected by NIST. Company CEO and co-founder Jay Prakash said that the three NIST-approved post-quantum algorithms—SPHINCS+, Falcon, and CRYSTALS-Dilithium—are not all MPC-friendly (i.e., supporting efficient distributed transaction signing). Different chains also have different optimization standards for signature size or computation efficiency, creating a risk of fragmentation.

Prakash said that keys are generated in shared form on isolated nodes, and signatures are produced jointly by multiple parties, with the keys themselves never being reconstructed. He said, “Any bank or custodian with existing MPC infrastructure can now migrate to a post-quantum MPC wallet without changing its infrastructure—this is just a code upgrade.” He also said that partners include BitGo and banks that are building digital asset businesses.

Postquant Labs and StarkWare research: Layer-layer substitution options

According to Decrypt, Postquant Labs takes a different route: adding an anti-quantum signature independent smart contract layer on top of Bitcoin, without modifying the base protocol. StarkWare researcher Avihu Mordechai Levy also proposed replacing Bitcoin’s elliptic curve cryptography (ECDSA) with hash (Hash) signatures so it can operate under existing network rules. Decrypt cites related descriptions indicating that this design is positioned as a “last resort,” not a scalable solution, and implementation costs may be on the high side.

Q day timeline and core divide between wallets/protocol layer

According to Decrypt, citing the Project Eleven report, quantum computers with cryptographic significance could appear within four to seven years, with the earliest capability to break elliptic curve digital signatures protecting blockchains in 2030. Project Eleven also announced on April 24, 2026 that it would award an almost $78,000 “Q Day bounty” (about 1 BTC) to Italian researcher Giancarlo Lelli to recognize his use of a Shor algorithm variant to break 15-bit elliptic curve cryptography keys.

In an interview, Prakash said, “If the wallet upgrades to the post-quantum era, but the blockchain doesn’t upgrade, that won’t work.” According to Decrypt, some developers in the industry are currently focusing on wallet-layer upgrades, while others believe only changing the protocol layer of the encrypted network itself can comprehensively protect users.

FAQs

Which post-quantum algorithm does Silence Laboratories adopt, and how does its institutional wallet upgrade plan work?

According to Decrypt’s May 11, 2026 report, Silence Laboratories has added support for the ML-DSA algorithm to its MPC signing system. CEO Jay Prakash said that institutions with existing MPC infrastructure do not need to change architecture—only a code upgrade is required to gain post-quantum security assurances.

Where does the latest time estimate for the Bitcoin “Q Day” quantum threat come from?

According to Decrypt, citing the Project Eleven report, quantum computers with cryptographic significance may appear as early as 2030. In April 2026, Project Eleven used a Shor algorithm variant to crack 15-bit elliptic curve keys and awarded researcher Giancarlo Lelli a bounty of about $78,000.

Why is upgrading only the wallet layer insufficient to address quantum threats?

According to statements from Silence Laboratories CEO Jay Prakash, “If the wallet upgrades to the post-quantum era, but the blockchain doesn’t upgrade, that won’t work.” Postquant Labs and StarkWare have both proposed different protocol-layer alternatives, but Decrypt’s report says there is still a clear split in the industry on this issue.