Danal and BTQ launch quantum-secure stablecoin network proof-of-concept
- Carmela Murray
- September 26, 2025
- Finance
- 0 Comments
Partnership Aims to Future-Proof Digital Finance
Danal and BTQ Technologies have started testing a proof-of-concept for what they’re calling a quantum-secure stablecoin settlement network. The announcement came through Digital Today, though I think we should be careful about calling anything “groundbreaking” until we see actual results.
The basic idea is pretty straightforward – they want to protect stablecoins from potential future threats posed by quantum computing. While quantum computers that could break current encryption are still years away, maybe decades, the thinking is that it’s better to start preparing now rather than waiting until it’s too late.
Why Quantum Security Matters for Stablecoins
Most current encryption relies on math problems that are incredibly difficult for today’s computers to solve. But quantum computers work differently – they could potentially crack these problems much faster. The worry is that once quantum computing becomes practical, a lot of our current digital security could become vulnerable.
What Danal and BTQ are trying to do is implement what’s called post-quantum cryptography. These are new algorithms designed to withstand attacks from both regular computers and quantum machines. They’re building this directly into the stablecoin settlement process, which means every transaction would get this extra layer of protection.
I’m not entirely convinced this is urgent right now, but I can see the logic in being proactive. Stablecoins handle billions in transactions, so having that future-proof security could be important down the line.
The Verification Phase and Challenges Ahead
Right now, they’re in what they call the “verification stage.” This is where they’ll test whether their quantum-secure protocols actually work as intended. They need to make sure the system is robust, doesn’t slow things down too much, and can handle real-world scale.
There are some obvious challenges here. Adding quantum security layers could make transactions more complex and potentially slower. There’s also the cost factor – implementing this technology across entire networks won’t be cheap. And they’ll need to get other players in the industry on board to make it a standard.
The companies involved bring different expertise to the table. Danal handles digital payments and identity solutions, while BTQ focuses specifically on quantum security. It makes sense they’d partner on something like this.
What This Means for Regular Users
For most people using stablecoins today, this probably won’t change much in the short term. The immediate security threats we face are more about phishing scams and exchange hacks than quantum computing attacks.
But looking further ahead, if this technology proves successful, it could help build more confidence in digital assets. Knowing that your stablecoins have protection against future threats might make people more comfortable using them for larger transactions or long-term holdings.
The proof-of-concept phase is just the beginning. If it works well, we might see pilot programs and eventually broader implementation. But that’s still a ways off – these things take time to test and refine.
While I’m skeptical about some of the hype around quantum threats, I do think it’s smart for the industry to start thinking about long-term security. The digital finance space moves quickly, and being prepared for future challenges is probably a good thing.
