Quantum Threats, Ripple’s Banking Milestone, and Shifts in Stablecoin Trading: This Week in Crypto Biz

Quantum computing risks and recent developments in the crypto sector are gaining attention.

Muneeb Ali, the founder of Stacks—a Bitcoin layer-2 solution—believes that fears over quantum computing are already hampering institutional investments, despite US spot Bitcoin ETFs holding over $104 billion in net assets as reported by BitBo. He cautions that Bitcoin has only a few years left to prepare for adopting quantum-resistant security measures. This adjustment could take considerable time due to the network’s typically slow and often disputed upgrade processes.

For institutional investors who view Bitcoin as a hedge against currency devaluation, doubts about its long-term security might make investment decisions more challenging.

This edition of Crypto Biz examines the quantum computing threat alongside new updates involving Ripple, VanEck, and Europe's evolving approach to stablecoins.

According to Stacks founder Muneeb Ali, Bitcoin faces a significant security challenge if meaningful progress towards quantum resistance is not achieved by 2028, given the Bitcoin network's long and complicated upgrade cycle.

Speaking on the Cointelegraph Chain Reaction podcast, Ali stressed that Bitcoin needs a credible strategy for transitioning to quantum-resistant security, with tangible advancements required by 2028. He referenced 2030 as the target date to complete this transition, based on guidance from the U.S. National Institute of Standards and Technology, although breakthroughs in artificial intelligence might accelerate this timeline.

Even if developers agree on a protection method against quantum attacks, implementing these changes could take several years. Bitcoin holders will then need ample time to transfer their assets to quantum-resistant addresses.

While some industry experts question the immediacy of the threat, Ali warned that mere uncertainty could erode investor confidence. He also noted that any quantum breakthrough capable of compromising Bitcoin would have wide-reaching repercussions throughout the crypto market.

Ripple has received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank, removing the last regulatory obstacle after conditional approval was granted in December 2025.

The newly chartered Ripple National Trust Bank will operate under federal oversight, manage reserves backing Ripple's RLUSD stablecoin, act as a collateral trustee for token holders, and provide digital asset custody services. RLUSD will continue to be issued through Standard Custody & Trust Company, regulated by the New York Department of Financial Services.

Ripple CEO Brad Garlinghouse welcomed the approval, emphasizing that "crypto and banks work better together."

This approval follows a similar final authorization for Circle in July, while Coinbase, Crypto.com, and Bridge—owned by Stripe—remain at the conditional approval stage. Unlike traditional commercial banks, national trust banks generally do not accept deposits, issue loans, or carry Federal Deposit Insurance Corporation (FDIC) insurance.

Circle’s USDC stablecoin has overtaken Tether’s USDT in euro-denominated trading volumes, influenced by regulatory changes under the European Union’s Markets in Crypto-Assets Regulation (MiCA).

A recent Kaiko report shows USDC's share of euro stablecoin trading has jumped to 56% from just 10% in January 2024. This shift accelerated as major exchanges restricted USDT trading for customers in the European Economic Area to comply with MiCA rules.

USDC’s order books in euros are about 40% deeper than USDT’s, indicating greater liquidity for traders. Nonetheless, USDT remains the dominant stablecoin globally, with circulating supply roughly 2.5 times larger than USDC's.

Following European Banking Authority's designation of USDC as the first "significant e-money token" in the EU, USDC is now subject to enhanced regulatory oversight. Kaiko also suggested that similar effects on stablecoin trading could emerge from the U.S. GENIUS Act depending on how exchanges implement new rules.

VanEck, managing $244 billion in assets, has launched an actively managed ETF combining traditional stocks and bonds with real assets and a modest allocation to Bitcoin.

The new VanEck Wealth Builder ETF (NYSE: WBMO), announced recently, invests in a mix of VanEck and third-party ETFs. It targets a 2% bitcoin exposure, adjustable between 1% and 5%, accessed via a spot Bitcoin exchange-traded product rather than direct ownership. This ETF consolidates VanEck's existing Wealth Builder model portfolios into one fund.

David Schassler, VanEck’s head of multi-asset solutions, noted that the classic 60/40 stock-bond portfolio was designed for a different investment climate. He explained that including real assets helps investors navigate varied economic environments, with Bitcoin now representing a small component of this updated strategy.

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This analysis highlights how quantum computing concerns are already influencing Bitcoin investment dynamics and broader market confidence. It also underscores significant regulatory and market shifts—such as Ripple's banking charter and USDC's growing role in Europe—that shape the evolving crypto landscape. These developments have immediate and strategic importance for investors and industry participants alike.

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The ongoing fears around quantum computing impact Bitcoin's security assessment well before any technical threat materializes, influencing institutional investment behavior. Meanwhile, regulatory approvals and shifts in stablecoin market share illustrate how evolving legal and market frameworks are redefining the crypto environment today. Understanding these trends is vital for navigating future risks and opportunities in the sector.

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