Major traditional financial institutions are rapidly expanding into digital asset custody, but the cryptographic foundations securing those holdings may face a future threat from quantum computing. BNY Mellon, the world's largest custodian managing $59.4 trillion in assets, announced Bitcoin and Ethereum custody services in Abu Dhabi, while Standard Chartered moved to fully acquire Zodia Custody, the digital asset firm it incubated in 2020. As institutional infrastructure around crypto storage matures, security researchers warn that sufficiently advanced quantum computers could eventually break the elliptic curve cryptography underpinning Bitcoin and Ethereum wallets. While no quantum machine capable of this exists today, the long time horizons of institutional custody arrangements mean banks building vaults now may need to plan for post-quantum cryptographic upgrades in the years ahead.
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