Crypto Biz: Quantum computing concerns create financial headwinds for Bitcoin
Growing quantum computing vulnerabilities pose security challenges for Bitcoin while Ripple obtains US banking approval, USDC expands European market share and VanEck launches BTC-inclusive ETF.
The ongoing discussion surrounding quantum computing technology has sparked significant concerns regarding Bitcoin's future security capabilities, though the financial ramifications may materialize well in advance of any actual technological breach of the network.
According to Muneeb Ali, who founded the Bitcoin layer-2 initiative Stacks, the risks associated with quantum computing are currently acting as a deterrent to institutional capital allocation, despite the fact that US spot Bitcoin ETFs have accumulated over $104 billion in net assets based on BitBo data. Ali cautions that Bitcoin has merely a handful of years remaining to execute the shift toward quantum-resistant protection mechanisms, a transformation that may require years to complete considering the network's track record of prolonged and disputed protocol modifications.
Among institutional capital allocators who view Bitcoin as protection against fiat currency erosion, uncertainties regarding its extended-term security characteristics may undermine the rationale for investment.
The current edition of Crypto Biz examines the quantum computing challenge, together with recent progress involving Ripple, VanEck and stablecoin penetration throughout Europe.
Stacks founder warns quantum computing concerns already restricting Bitcoin expansion
The flagship cryptocurrency may confront a far more substantial security obstacle if its development community cannot achieve substantive advancement on quantum resistance before 2028, according to Muneeb Ali, founder of Stacks, who emphasized that the network's extended upgrade timeline provides minimal margin for postponement.
During his appearance on Cointelegraph's Chain Reaction podcast, Ali stated that Bitcoin requires a viable plan for achieving quantum resistance, with tangible advancement necessary by 2028. He referenced 2030 as the objective for finalizing the migration to quantum-resistant protection, drawing on recommendations from the National Institute of Standards and Technology, although developments in artificial intelligence may accelerate that timeframe.
Even in scenarios where developers reach consensus on methods to defend Bitcoin from quantum-based attacks, deploying those modifications may span multiple years. After implementation, holders would subsequently require additional time to transfer their Bitcoin holdings to quantum-resistant wallet addresses.
While certain market participants challenge the immediacy of this threat, Ali maintained that the uncertainty itself has potential to erode investor trust. He additionally cautioned that any quantum computing advancement capable of breaching Bitcoin's security would generate ramifications throughout the entire cryptocurrency ecosystem.
Ripple obtains federal banking charter in United States
Ripple has obtained ultimate authorization from the US Office of the Comptroller of the Currency for establishing a national trust banking institution, removing the final regulatory obstacle following its receipt of provisional approval in December 2025.
The freshly approved Ripple National Trust Bank will function under federal regulatory oversight, administer reserves supporting the firm's RLUSD stablecoin, function as a collateral trustee for token holders and deliver digital asset custody services. The RLUSD stablecoin will remain issued through Standard Custody & Trust Company, which operates under regulation by the New York Department of Financial Services.
Brad Garlinghouse, Ripple's CEO, praised the authorization, stating that "crypto and banks work better together."
This determination arrives after comparable final authorization was granted to Circle in July, whereas Coinbase, Crypto.com and Stripe-owned Bridge continue to hold conditional approval status. In contrast to conventional commercial banking institutions, national trust banks typically lack authority to accept deposits or extend loans and do not qualify for Federal Deposit Insurance Corporation protection.
USDC surpasses Tether in euro-denominated transactions as MiCA regulations influence market
The USDC stablecoin from Circle has eclipsed Tether's USDt in trading volume denominated in euros, as regulatory frameworks throughout the European Union transform the competitive landscape between the planet's two predominant dollar-pegged stablecoins.
Based on recent research from Kaiko, USDC presently represents 56% of stablecoin trading conducted in euros, climbing from merely 10% in January 2024. This transition gained momentum following the decision by prominent cryptocurrency trading platforms to limit USDt trading access for European Economic Area users in order to satisfy the EU's Markets in Crypto-Assets Regulation (MiCA) requirements.
The euro-denominated order books for USDC currently demonstrate approximately 40% greater depth compared to USDt's, indicating enhanced liquidity available to market participants. Nevertheless, USDT maintains its position as the preeminent stablecoin on a worldwide basis, with outstanding supply approximately 2.5 times greater than USDC's circulation.
These results emerge following the European Banking Authority's classification of USDC as the region's inaugural "significant e-money token," imposing enhanced regulatory supervision requirements. Kaiko indicated that the US GENIUS Act may generate comparable shifts in stablecoin trading patterns, contingent upon the manner in which trading platforms execute the new regulatory mandates.
VanEck incorporates Bitcoin in newly launched multi-asset ETF
Asset management firm VanEck, which oversees $244 billion, has introduced an actively managed exchange-traded fund that blends conventional equities and fixed income securities with tangible assets and a modest Bitcoin position.
The VanEck Wealth Builder ETF (NYSE: WBMO), revealed Tuesday, allocates capital across a combination of VanEck and external ETFs and establishes a 2% Bitcoin target allocation, with flexibility to range between 1% and 5%. Instead of directly holding Bitcoin, the fund obtains exposure via a spot Bitcoin exchange-traded product. This introduction extends VanEck's current Wealth Builder model portfolio offerings into a unified ETF structure.
According to David Schassler, who leads VanEck's multi-asset solutions division, the conventional 60/40 allocation between equities and bonds was created for an alternative investment landscape. He argued that incorporating real assets may assist investors in managing a wider spectrum of economic scenarios, with Bitcoin now constituting a modest component of that approach.
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