Quantum Computing Threatens Crypto Encryption as BIS Warns Asset Owners to Act Now

A recent warning argues that pension funds, endowments, and sovereign wealth funds face real cybersecurity exposure from quantum computing right at this moment and not years in the future. The specific threat are the “harvest now, decrypt later” attacks, where malicious actors steal encrypted financial data today and wait for quantum machines capable of cracking it. For anyone holding or custodying crypto and digital assets, this applies directly to the public-key cryptography securing wallets, transactions, and custody infrastructure.

Angelo Calvello, founder of C/79 Consulting, wrote the analysis, in which he argues that institutional investors are busy wondering if quantum computing is overhyped instead of auditing whether their custodians and service providers have started migrating to post-quantum cryptography. NIST finalized its first post-quantum cryptography standards in 2024 and the Bank for International Settlements (BIS) has said the encryption threat is present-tense.

Wall Street Is Already Moving

Indeed, JPMorgan Chase, BlackRock, Goldman Sachs, and Vanguard are already building quantum research programs and vendor partnerships. HSBC and IBM recently demonstrated that current quantum hardware could improve certain bond-trading predictions compared to classical methods. These firms are preparing for a future where quantum-enhanced optimization and simulation create structural advantages in portfolio management and risk modeling.

Private venture investment in quantum technologies hit $4.9 billion in 2025, a 190% increase from the prior year, according to QED-C data. Many institutional investors already have indirect exposure through venture capital allocations they may not have closely examined.

What This Means for Crypto

The entire crypto ecosystem runs on public-key encryption. Bitcoin and every major blockchain depend on elliptic curve cryptography that quantum computers could eventually break. Custodians, exchanges, and wallet providers that delay post-quantum migration are accumulating risk that compounds over time. Data intercepted today could become readable once fault-tolerant quantum machines arrive, with expert estimates ranging from the late 2020s to mid-2030s.

Calvello’s recommendation for most asset owners is to address cybersecurity exposure immediately and build quantum awareness into manager due diligence. Ignoring the issue until it becomes unavoidable repeats the same mistake many institutions made during the rise of AI, where early movers captured advantages that latecomers couldn’t easily replicate.