BitGo unveils quantum defenses for institutional Bitcoin wallets

BitGo announced Thursday it will introduce quantum-protection tools for institutional UTXO-based Bitcoin wallets and has filed a provisional patent for a method that groups and prioritizes UTXOs to limit quantum-related exposure.

The toolkit will extend BitGo's multi-signature security architecture with operational features to help institutions assess, manage and reduce quantum risk across UTXO wallets. BitGo expects to roll out the capabilities in the coming weeks, including tools for managing wallet-key exposure, improving handling of unspent transaction outputs and strengthening institutional wallet operations.

Unspent Transaction Outputs, or UTXOs, are individual units of bitcoin that together make up a wallet balance. In UTXO-based wallets, spending an output can reveal the associated public key on the blockchain. If a public key is exposed, future advances in quantum computing could make it easier to derive the private key that controls the funds.

BitGo's provisional-patent method aims to group and prioritize UTXOs by address to reduce the security risks that come from partially spent funds. The company noted the patent does not cover address types that expose a public key from the outset, such as Taproot and Pay-to-Public-Key, which require separate migration plans.

BitGo co-founder and CEO Mike Belshe said, “We believe the safest key is one whose public key has never been revealed onchain. These capabilities give institutions a practical way to understand and reduce quantum exposure while continuing to rely on the proven security of multi-signature.” He added institutions should begin reducing exposure now and prepare for migration to post-quantum standards.

An advisory report last month estimated about 7 million bitcoin are held in addresses that currently expose a public key and could be at risk if quantum attacks become practical. Cryptographers note that quantum-resistant algorithms exist, and the larger challenge is implementing them across infrastructure and wallets.

BitGo did not disclose pricing or which clients will receive early access. The company described the additions as operational measures for institutions, and said certain address types will need distinct migration plans as the industry discusses how to move wallets and key management to post-quantum-safe standards without disrupting operations.