Banks and Three Regulators Test Quantum-Resistant Crypto Custody

Quantum-Resistant Crypto Custody just left the lab and entered a bank test. On 24 August 2026, the Responsible Fintech Institute (RFI) and custody firm Safeheron launched a pilot across regions. Two banks, Bison Bank and DK Bank, are making wallets and moving digital assets on a quantum-resistant NEAR testnet.

Three regulators are watching. No customer money is at risk, and the public NEAR mainnet is untouched. 

Still, the pilot shows how post-quantum cryptography could work inside a real bank. This guide covers the threat, the test, the players, and the next steps.

Why Does Quantum Computing Threaten Digital Asset Security?

Wallets run on math. Quantum computers could one day break part of that math. Quantum-resistant crypto custody exists because of this risk, so this section starts from zero.

How Does Public-Key Cryptography Protect a Wallet?

Every crypto wallet holds two keys. The private key stays secret. The public key can be shared with anyone.

The private key signs each transaction. The network checks that signature with the public key. Bitcoin uses a scheme called ECDSA for this job, and Ethereum accounts use it too.

It works because no normal computer can turn a public key back into the private key.

What Can Shor's Algorithm Do to RSA and ECC?

In 1994, Peter Shor described a quantum method for two hard problems. One is factoring big numbers, which guards RSA. The other is the discrete logarithm, which guards elliptic curve cryptography (ECC).

A large, error-corrected quantum computer could use that method to find a private key from a public key. That machine does not exist yet. Bitcoin's hashing faces a much weaker threat, so signatures are the weak spot.

What Is Q-Day and Why Does Timing Matter?

Q-Day is the day a quantum computer can break common public-key tools. The Bank for International Settlements (BIS) calls such a machine a cryptographically relevant quantum computer. It says the date is still unknown.

Waiting is risky. A wallet shows its public key when it spends, and that stays public for good. Attackers can also copy data now and crack it later. The BIS calls this "harvest now, decrypt later." That is why quantum-resistant crypto custody matters today.

Progress is real but small. In April 2026, Giancarlo Lelli broke a simple 15-bit elliptic curve key on a public quantum computer. Real wallet keys have 256 bits.

What Happened in the Quantum-Resistant Crypto Custody Test?

The news came from Singapore on 24 August 2026. The pilot tests quantum-resistant crypto custody in a setup that mirrors how regulated banks work.

Who Is Running the Pilot?

RFI is an independent nonprofit. It works on standards and good governance across old and new finance. In this Quantum-Resistant Crypto Custody pilot, it leads governance and links the regions.

Safeheron is a custody firm that builds tools with multiparty computation and trusted execution environments. It built the protocol, the ML-DSA-65 signing code, and the test app.

RFI Chairman Chia Hock Lai said, "No single bank, vendor, or regulator solves this alone."

What Did Bison Bank and DK Bank Test?

Both banks made wallets and sent on-chain transfers in a shared app. They did this on a quantum-resistant copy of the NEAR testnet. That testnet checks ML-DSA-65 signatures, not the ECDSA signatures used on the mainnet.

Bison Bank is a private bank from Portugal with a digital assets arm. Its CEO, António Henriques, said the bank backs talks on how firms can prepare. DK Bank, also called Digital Kidu, is a digital bank from Bhutan. It is the official bank of Gelephu Mindfulness City.

More firms are in talks to join. Each firm's level of part may vary.

What Has the Pilot Not Proven Yet?

Quantum-resistant crypto custody is still in the test stage. The pilot has clear limits:

• It runs on a testnet, not on live systems.

• The news names no approval or seal from any regulator.

• No firm date exists for Safeheron's open-source release.

RFI plans a whitepaper on the research, the design, and the results. Safeheron plans to share its code so outside experts can audit it.

Which Three Regulators Joined and Why Does It Matter?

Three regulators from the Middle East, Asia, and Europe joined as observers in phase one. They also join a governance track in the next phase of the Quantum-Resistant Crypto Custody pilot.

What Is the Role of Abu Dhabi Global Market?

Abu Dhabi Global Market (ADGM) is the financial hub of Abu Dhabi, the capital of the United Arab Emirates. It joins as an observer next to regulators from Bhutan and Malta.

What Is the Role of the Gelephu Financial Services Office?

The Gelephu Financial Services Office (GFSO) is the independent financial regulator for Gelephu Mindfulness City in Bhutan. Its managing director, David Peters, welcomed the push to find a reliable protocol for digital asset deals. He said protecting client funds is vital for a smooth investment market.

What Is the Role of the Malta Financial Services Authority?

The Malta Financial Services Authority (MFSA) is the financial regulator of Malta. Alan Decelis leads its work on ICT risk and cybersecurity. He said early talks matter. He said the pilot lets the MFSA add a supervisory view while it learns about the risks of quantum-safe finance.

Why Does Their Oversight Matter?

Regulators can now watch Quantum-Resistant Crypto Custody at work before any rules arrive. Seeing a signing process run teaches more than reading a standard.

Observers are not approvers, though. The pilot does not mean ADGM, GFSO, or MFSA backs the tech.

How Do NIST ML-DSA-65 and MPC Secure Wallet Transfers?

Two parts sit under the pilot. One is a signature standard that resists quantum attacks. The other is a way to split key control. Together they form the core of this quantum-resistant crypto custody model.

What Is the NIST ML-DSA-65 Standard?

NIST finalized FIPS 204 on 13 August 2024. It sets out ML-DSA, a digital signature scheme built on the older CRYSTALS-Dilithium design. The NIST ML-DSA-65 Standard is the middle of three sizes: 44, 65, and 87. It sits at security level 3, close to AES-192 strength.

It rests on lattice math that no known quantum method cracks. The cost is size. An ML-DSA-65 public key is 1,952 bytes. A signature is 3,309 bytes.

How Do Multiparty Computation Wallets Work?

Multiparty computation wallets split control of a key between parties. No one party holds the whole key. This is the heart of the quantum-resistant crypto custody design in the pilot.

The pilot uses a tentative 2-of-2 design in which the bank keeps its own key share. A wallet signs only when both sides agree. The aim is to keep the bank's workload light while it keeps control of key ownership.

Conclusion

Banks and regulators have now watched Quantum-Resistant Crypto Custody run in a controlled test. Bison Bank and DK Bank made wallets and moved assets on a quantum-resistant NEAR testnet. ADGM, GFSO, and MFSA looked on.

The pilot used ML-DSA-65 and a 2-of-2 key split. It is a testnet trial, not proof at scale. Next come the RFI whitepaper and Safeheron's open-source release. Banks should start mapping their keys now.

Disclaimer: This article is for learning only. It is not financial, legal, or investment advice. Crypto assets carry risk. The pilot runs on a testnet and does not prove that any product is safe. Do your own research before you act.