Blockstream has unveiled a new cryptographic proposal and expanded hardware wallet lineup designed to protect Bitcoin from future quantum computing threats, addressing a growing concern across blockchain networks and governments. The Bitcoin infrastructure company published its Q2 2026 quarterly update detailing progress on post-quantum security, new Jade hardware wallet models, and infrastructure upgrades aimed at safeguarding self-custody options for users worldwide.

What Is Post-Quantum Cryptography and Why Does Bitcoin Need It?

Quantum computers represent a potential long-term threat to current cryptographic systems because they could theoretically break the mathematical puzzles that secure Bitcoin and other blockchains. While quantum computers capable of this do not exist yet, blockchain projects and governments are preparing now to avoid a crisis later.

Blockstream Research proposed a new signature opcode called OP_CHECKSHRINCS, which uses hash-based cryptography instead of the elliptic curve math that Bitcoin currently relies on. The scheme could support up to 3 transactions per second with 580-byte signatures and relies only on SHA-256, a hash function already deeply embedded in Bitcoin's code. The team released a C++ implementation, a simplicity verifier, and a specification draft for community review.

This proposal contrasts with some National Institute of Standards and Technology (NIST) standardized alternatives that offer lower transaction throughput. The approach reflects Blockstream's philosophy of maintaining Bitcoin's efficiency while preparing for quantum threats.

How Is Blockstream Expanding Self-Custody Hardware Options?

Blockstream expanded its Jade hardware wallet lineup to three models, each designed for different user needs and budgets:

• Jade Classic ($79): An entry-level option emphasizing open-source firmware and self-custody principles for users new to hardware wallets.
• Jade Core ($99): Positioned as an accessible option for users moving assets from cryptocurrency exchanges to self-custody for the first time.
• Jade Plus ($149): A premium model offering expanded features for users managing larger portfolios or requiring additional security layers.

All three models share open-source firmware and emphasize self-custody, meaning users maintain full control of their private keys rather than relying on a third party to hold their assets. Firmware updates added two-factor authentication (2FA) capabilities, allowing users to store one-time password (OTP) codes offline for added security.

Why Are Other Blockchain Networks Also Preparing for Quantum Threats?

Blockstream's quantum preparedness efforts are part of a broader industry shift. Algorand outlined a roadmap targeting broad quantum resistance by the end of 2027, with the first phase beginning in Q3 2026. The plan includes upgrades to user accounts, wallets, custody solutions, and core network components.

Stellar launched its Quantum Preparedness Plan (QPP), aiming to enable quantum-resistant signatures for all accounts while maintaining backward compatibility. The network expects full support through a protocol upgrade by the end of 2027.

Meanwhile, US President Trump signed two executive orders mandating federal agencies to transition to NIST-approved post-quantum standards, with hard deadlines of December 2030 for key establishments and December 2031 for digital signatures. These coordinated efforts reflect growing urgency across blockchain projects and governments to prepare for quantum computing threats to current cryptographic systems.

How Can Users Strengthen Their Custody Strategy?

As quantum threats loom and custody options expand, users have several practical steps to consider:

• Evaluate Hardware Wallet Options: Blockstream's expanded Jade lineup offers three price points and feature sets, making hardware wallets more accessible for users at different experience levels and with different portfolio sizes.
• Understand Self-Custody vs. Exchange Storage: Self-custody means you control your private keys and bear responsibility for security; exchange custody means a third party holds your assets but handles security infrastructure.
• Plan for Long-Term Asset Security: As quantum computing threats become more concrete, consider how your current custody solution will evolve to support post-quantum cryptography standards expected by 2027 to 2031.
• Explore Hybrid Custody Models: Some users combine hardware wallets for long-term storage with payment cards or hot wallets for everyday transactions, balancing security with convenience.

For most users, quantum threats remain theoretical and distant. However, the infrastructure being built now will shape how digital assets are secured for decades. Blockstream's expanded Jade hardware wallet lineup broadens self-custody options, although widespread adoption continues to depend on broader user demand and preferences.

The update reflects Blockstream's continued focus on long-term infrastructure development, with many of the technologies expected to evolve over multiple development cycles before broader deployment. OP_CHECKSHRINCS has been proposed for community review, and any potential adoption on Bitcoin would require broad consensus through the network's governance process.

"With Blockstream's Q2 update, we see the company advancing both the cryptographic foundations and the hardware infrastructure needed to protect Bitcoin as quantum computing threats become more concrete," the company stated in its quarterly report.

Blockstream, Q2 2026 Quarterly Update

The convergence of quantum preparedness, expanded hardware wallet options, and new payment infrastructure suggests the crypto custody landscape is maturing. Users no longer face a binary choice between exchange custody and self-custody; instead, they can layer different tools and strategies based on their needs, risk tolerance, and time horizon.

Blockstream's Q2 update underscores that infrastructure development for quantum threats is not speculative or distant. Major blockchain networks, hardware manufacturers, and governments are actively building the systems that will protect digital assets for the next decade and beyond.