BTQ Technologies and Danal Launch Quantum-Secure Stablecoin Settlement Proof-of-Concept

Executive Summary

BTQ Technologies Corp., in collaboration with Danal Co., Ltd., a prominent South Korean mobile payments provider, has initiated a Proof-of-Concept (PoC) for the Quantum-Secure Stablecoin Settlement Network (QSSN). This deployment marks the world's first large-scale trial of quantum-secure settlement integrated into existing financial infrastructure, aiming to future-proof digital asset transactions against advanced cryptographic threats. The PoC focuses on embedding post-quantum security, programmable issuer controls, and real-time compliance features within Danal's extensive payment rails, which serve tens of millions of users and thousands of merchants through services like Paycoin (PCI).

The Event in Detail

The QSSN PoC involves integrating BTQ's quantum-secure settlement layer into select components of Danal's payment infrastructure. Danal, listed on KOSDAQ (064260) and operator of Paycoin, facilitates payments across e-commerce, gaming, digital content, and offline retail in Korea. The core objective of QSSN is to introduce post-quantum cryptography (PQC) to protect stablecoin transactions from theoretical quantum computer attacks, specifically addressing the "harvest-now, decrypt-later" vulnerability where encrypted data could be collected today and decrypted by future quantum machines.

Crucially, QSSN is designed to maintain the existing user and merchant experience by operating at the settlement layer. This "drop-in" integration aims to add security benefits without operational disruption or the need for consumer retraining. The network's capabilities include cryptographically enforced issuer controls such as mint/burn permissions, velocity limits, and blacklist/whitelist rules, alongside compliance-ready hooks for existing regulatory workflows.

Market Implications

This PoC holds significant implications for the burgeoning stablecoin market, which reached approximately $280 billion in circulation and saw an on-chain transaction volume of roughly $5.7 trillion in 2024. By demonstrating a pragmatic roadmap for implementing PQC at a national scale with carrier-grade performance, the initiative could accelerate the adoption of quantum-resistant technologies across the financial sector. Enhanced security and compliance features are expected to build greater trust in digital assets, potentially fostering broader institutional adoption and influencing future regulatory frameworks, particularly in advanced digital economies. The successful rollout could set a new global standard for digital money security and positioning QSSN as a critical infrastructure provider for secure, scalable stablecoin and tokenized-asset markets.

Expert Commentary

The QSSN has garnered attention from global standardization and regulatory bodies. The U.S. Post-Quantum Financial Infrastructure Framework (PQFIF) has cited BTQ's QSSN as a model for pilot programs focused on quantum-secure tokenized deposits. This endorsement signals a shift from conceptual discussions to practical implementation and aligns with emerging NIST PQC standards. Furthermore, QuINSA has unanimously approved QSSN as a global standard initiative, placing it on the ITU / ISO / ETSI / IEEE track. These developments highlight the industry's recognition of QSSN's architecture as regulator-friendly and essential for the future integrity of digital finance. Analysts suggest this alignment with U.S. and international standards, including NIST FIPS 203/204/205 and NSA's CNSA 2.0 guidance, is crucial for widespread adoption among financial institutions.

Broader Context

BTQ's strategy focuses on providing a standards-aligned security layer for the next generation of money, contrasting with strategies centered on direct digital asset treasury holdings. The company is advancing QSSN toward commercial deployment with a phased approach, targeting Q4 2025 pilots with leading issuers and cross-chain settlement validation. The development roadmap prioritizes rapid scaling through 2026, including support for major stablecoins across multiple networks, settlement-compression technologies, and advanced features like collateral management. This proactive approach to quantum security in digital finance is essential, as the cryptographic foundations of most existing digital assets are vulnerable to future quantum attacks. The collaboration between BTQ and Danal represents a significant step towards securing the integrity and long-term viability of the global digital asset ecosystem. The company aims to showcase QSSN's capabilities at the DeFi Technologies Insights Frankfurt Symposium on September 25, 2025, demonstrating quantum-secure stablecoin issuances for financial institutions and DeFi protocols.

source:

[1] BTQ Technologies Launches QSSN Proof-of-Concept with Danal, Korea's Mobile Payments Leader (https://cryptocurrencynews.com/crypto/btq-tec ...)[2] BTQ Technologies Launches QSSN Proof-of-Concept with Danal, Korea's Mobile Payments Leader - Stock Titan (https://stocktitan.com/news/btq-technologies- ...)[3] U.S. PQFIF Highlights BTQ's QSSN for Post-Quantum Digital Money; QuINSA Unanimously Advances QSSN as a Global Standards Initiative - PR Newswire (https://vertexaisearch.cloud.google.com/groun ...)

Related News

Sep 30 2025, 17:48

CoinRoutes Acquires QIS Risk for $5M to Bolster Institutional Crypto Trading Tools

Executive Summary CoinRoutes, a provider of institutional cryptocurrency trading solutions, has acquired QIS Risk for $5 million in cash and stock. This strategic integration aims to combine CoinRoutes' algorithmic execution technology with QIS Risk’s advanced portfolio monitoring and risk analytics, creating a comprehensive platform for institutional investors navigating the digital asset markets. The Event in Detail CoinRoutes announced the acquisition of QIS Risk for a total consideration of $5 million, comprising both cash and stock. This deal is designed to integrate CoinRoutes' established algorithmic execution technology with QIS Risk’s specialized capabilities in portfolio monitoring and risk analytics. The objective is to deliver an enhanced, all-encompassing institutional solution that includes connectivity to both centralized (CEX) and decentralized (DEX) exchanges, real-time portfolio tracking, comprehensive risk analytics, and decentralized finance (DeFi) tracking. As part of the acquisition, Fred Cox, founder of QIS Risk, will assume the role of CoinRoutes’ global Chief Technology Officer, overseeing technology operations and leading expansion efforts in Europe. Financial Mechanics & Strategic Positioning The $5 million acquisition, paid in cash and stock, positions CoinRoutes to deepen its offerings for institutional clients. By integrating QIS Risk’s solutions, CoinRoutes is directly addressing the escalating demand from institutional investors for sophisticated tools that facilitate risk management and portfolio visibility across complex digital asset landscapes. This strategy aligns with a broader industry trend seen in 2025, where firms are seeking to build full-stack ecosystems through strategic acquisitions. For instance, BlockFills, a digital asset trading provider, previously collaborated with QIS Risk to enhance portfolio visibility and risk analysis for mutual clients, indicating the value proposition of QIS Risk’s technology. The move by CoinRoutes reflects a focus on internalizing and expanding such capabilities rather than relying solely on partnerships. Market Implications This acquisition signals a further maturation of the institutional cryptocurrency market. The combined platform’s capabilities—including CEX/DEX connectivity, real-time monitoring, and DeFi tracking—are expected to lower barriers to entry for traditional finance institutions seeking exposure to digital assets. This consolidation of advanced trading and risk management tools can contribute to increased liquidity and more sophisticated trading strategies from institutional players. The heightened focus on robust infrastructure, risk analytics, and regulatory compliance, as evidenced by this acquisition, is crucial for legitimizing crypto as an asset class for a wider institutional audience. Expert Commentary Following a previous collaboration, Fred Cox, founder of QIS Risk, commented on the importance of delivering institutional-grade infrastructure. He stated, "QIS Risk is excited to be working with BlockFills to provide our mutual clients with deep market liquidity, while maintaining our position as a trusted golden source for digital asset portfolio management. This alignment represents another step forward in delivering institutional-grade infrastructure to meet the sophisticated and ever-evolving needs of digital assets investors." His leadership as the new CTO at CoinRoutes underscores the strategic importance of integrating advanced risk and portfolio management into the core trading infrastructure. Broader Context The acquisition of QIS Risk by CoinRoutes is part of a larger trend of mergers and acquisitions in the digital asset space aimed at enhancing institutional infrastructure and market access. In 2025, major deals have included Coinbase acquiring Deribit for $2.9 billion to expand into options and futures, Kraken acquiring NinjaTrader for $1.5 billion to enter regulated futures, and Ripple acquiring Hidden Road for $1.25 billion to bolster prime brokerage services. Additionally, initiatives like Binance’s "Crypto-as-a-Service" (CaaS) aim to provide white-label solutions for traditional financial institutions to offer crypto trading services. These developments collectively indicate a strategic push by crypto-native firms to integrate with existing financial infrastructure and cater to the evolving needs of institutional investors, fostering greater legitimacy and capital inflow into the digital asset ecosystem.

Sep 30 2025, 17:42

Crypto Market Surges: Altcoin ETFs Near Approval, Visa Adopts Stablecoins, and BTCFi Expands

Executive Summary The cryptocurrency market is experiencing a significant uplift driven by a confluence of regulatory developments, institutional adoption, and infrastructure advancements. Bloomberg Senior ETF Analyst Eric Balchunas has effectively declared 100% odds for the approval of various altcoin spot ETFs, including those for Litecoin, Solana, and XRP, following the SEC's new generic listing standards. Concurrently, Visa has initiated a pilot program to integrate USDC and EURC stablecoins into its Visa Direct service for cross-border payments, aiming to streamline transactions. Furthermore, Starknet has launched a substantial 100 million STRK incentive program to foster its Bitcoin finance (BTCFi) ecosystem, promoting institutional-grade Bitcoin yield products. The Event in Detail Visa Pilots Stablecoin for Cross-Border Payments Visa has launched a pilot program enabling banks and financial institutions to pre-fund cross-border payments using stablecoins. Announced at SIBOS 2025, this initiative utilizes Circle's USDC and EURC to facilitate near-instant payouts via Visa Direct, a move designed to reduce settlement times from days to minutes. Chris Newkirk, president of commercial and money movement solutions at Visa, stated that the goal is to modernize treasury operations and reduce the need for capital to be pre-parked. The stablecoin market capitalization stands at over $307 billion, and Visa has already settled more than $225 million in stablecoin volume. The pilot is currently limited to select partners, with a broader rollout anticipated in 2026. This strategy aims to unlock working capital, mitigate currency volatility exposure, and improve predictability in treasury flows. Altcoin ETF Approvals Deemed 100% Certain by Bloomberg Analyst Bloomberg Senior ETF Analyst Eric Balchunas has assessed the odds of SEC approval for spot altcoin ETFs as effectively 100%. This follows the SEC's implementation of new generic listing standards, which have rendered the 19b-4 filing process largely obsolete. The SEC instructed issuers to withdraw pending 19b-4 filings for Litecoin, XRP, Solana, Cardano, and Dogecoin ETFs. The approval now hinges primarily on the S-1 registration statements, which detail the ETF structure and operations. Seven major asset managers, including Franklin Templeton, Fidelity, CoinShares, Bitwise, Grayscale, VanEck, and Canary Capital, have submitted updated S-1 documents for spot Solana ETFs. The new framework fast-tracks pending applications and reduces review timelines for new submissions from 240 days to as little as 75 days. The SEC's approval of Grayscale's Digital Large Cap Fund under this streamlined system, offering exposure to Bitcoin, Ether, XRP, Solana, and Cardano, underscores the shift. Over 92 crypto ETF applications are awaiting SEC review, with decision deadlines extending into October and November, including Franklin Templeton's Solana and XRP ETF applications by November 14. Starknet Launches 100 Million STRK Incentive for BTCFi Expansion Starknet is initiating a new era for Bitcoin finance (BTCFi) with a 100 million STRK incentive program and the activation of trustless Bitcoin staking. This initiative aims to position Starknet as a key execution layer for Bitcoin. Re7 Capital, a regulated firm managing over $1 billion in assets, is launching an institutional-grade Bitcoin yield product on Starknet. This product combines conservative off-chain derivatives strategies with on-chain passive yield opportunities, including staking on Starknet, to generate returns in BTC. The staking mechanism on Starknet currently relies on wrapped assets such as tBTC, LBTC, WBTC, and SolvBTC, meaning users interact with smart contracts on Starknet while custody depends on the safety of the wrapper infrastructure and cross-chain bridges. Tom Brand, StarkWare's head of product, emphasized that Starknet's approach allows BTC to directly secure a high-throughput zk rollup, underpinning real economic activity. This differs from projects like Babylon, which focuses on securing external proof-of-stake chains, and Botanix, which builds an EVM chain on Bitcoin. Bitcoin and Ethereum ETF Inflows Rebound US-listed spot Bitcoin and Ethereum ETFs collectively saw over $1 billion in net inflows on September 29, reversing previous outflows and signaling renewed institutional interest. Bitcoin ETFs recorded $521.95 million in inflows, led by Fidelity's FBTC with $298.70 million. Other significant contributors included Ark 21Shares' ARKB ($62.18 million), Grayscale's BTC and Bitwise's BITB (approximately $47 million each), and Invesco's BTCO ($35.34 million). BlackRock's IBIT was the sole Bitcoin ETF to register outflows, totaling $46.64 million. Ethereum ETFs saw even stronger inflows, reaching $546.96 million. Fidelity's FETH led with $202.18 million, followed by BlackRock's ETHA at $154.20 million. Grayscale's ETH and ETHE added $99.84 million and $22.77 million, respectively. This rebound coincided with a broader recovery in asset prices, with Bitcoin climbing back to $114,000, indicating strong institutional demand sensitive to market signals. Market Implications The cumulative effect of these developments points to a significant acceleration of institutional investment and integration within crypto markets. Visa's stablecoin pilot directly addresses inefficiencies in traditional cross-border payments, leveraging the $307 billion stablecoin market to improve liquidity and transaction speed for financial institutions. This move is expected to enhance efficiency for cross-border payments, potentially fostering broader mainstream adoption of stablecoins. The near-certain approval of altcoin ETFs will likely introduce substantial new capital into a wider array of digital assets, deepening liquidity and potentially leading to price surges for these assets. This regulatory clarity and streamlined access will attract a broader spectrum of institutional investors who previously faced barriers to entry. Starknet's BTCFi initiative, supported by a 100 million STRK incentive, aims to make Bitcoin a more productive asset within decentralized finance, thereby expanding its utility beyond a store of value. This contributes to deeper integration of crypto into traditional finance and enhances the utility of Layer 2 solutions. The recent rebound in Bitcoin and Ethereum ETF inflows, totaling over $1 billion, underscores renewed investor confidence and a trend towards increased institutional engagement, which is projected to triple in DeFi within two years. Expert Commentary Bloomberg Senior ETF Analyst Eric Balchunas emphasized the regulatory shift, stating: > "Honestly, the odds are really 100% now." He clarified that the SEC's new generic listing standards make the 19b-4 filings and their associated clock "meaningless," with only S-1 registrations awaiting formal approval. This indicates a significant procedural streamlining by the SEC. Timothy Misir, head of research at BRN, noted that the sharp recovery in Bitcoin's price to $114,000, coinciding with ETF inflows, reinforces the view that "institutional demand remains highly sensitive to market signals." Chris Newkirk of Visa highlighted the transformative potential of stablecoins in payments, stating: > "Cross-border payments have been stuck in outdated systems for far too long." He added that Visa Direct's new stablecoin integration lays the groundwork for money to move instantly across the world. Broader Context These developments signify a pivotal moment in the ongoing convergence of traditional finance and the digital asset ecosystem. Visa's strategic embrace of stablecoins for its Visa Direct service mirrors a broader industry trend toward leveraging blockchain technology for operational efficiency and cost reduction, particularly in global financial infrastructure. This move strategically positions Visa at the forefront of digital payment innovation, enhancing its offering to banks and financial institutions. The SEC's revised approach to ETF approvals, particularly for altcoins, marks a critical maturation of the regulatory landscape. By streamlining the approval process and effectively guaranteeing the listing of a wider range of crypto ETFs, the SEC is facilitating greater mainstream adoption and institutional access, thereby legitimizing digital assets further within conventional investment portfolios. This echoes the impact seen with Bitcoin ETFs, which have seen a structural shift from a retail-driven market to one dominated by institutional demand, with US spot Bitcoin ETFs alone managing nearly $219 billion in assets by early September 2025. Starknet's focus on BTCFi with significant incentives positions it as a key player in unlocking the utility of Bitcoin beyond a passive store of value. Its strategy of enabling trustless Bitcoin staking through wrapped assets, while different from direct native staking, is designed to integrate Bitcoin into the burgeoning decentralized finance ecosystem, creating new yield opportunities for institutional investors through platforms like Re7 Capital. This broader trend indicates that institutional capital is increasingly diversifying into utility-driven altcoins and sophisticated DeFi strategies, signifying a deepening integration of crypto into global financial markets and a reduction in market volatility as institutional participants bring greater stability and liquidity.

Sep 30 2025, 17:33

Ethereum Foundation Report Reveals Internal Divisions,

Executive Summary A report commissioned by the Ethereum Foundation from research group WE3, supported by Optimism and Espresso Systems, has revealed significant internal divisions within the Ethereum community. The "Mirror" project, based on over 60 interviews with core developers, researchers, investors, and community leaders, identifies eight distinct factions and highlights a lack of consensus on Ethereum's identity, leading some insiders to describe an "existential crisis." The report suggests that the growing number of individuals prioritizing immediate needs and short-term pragmatism is overshadowing the protocol's long-term vision, posing a critical challenge to Ethereum's future evolution and competitive standing. The Report in Detail The Ethereum Foundation initiated the "Mirror" project to gather perceptions of Ethereum from various stakeholders. The research, conducted by WE3 with support from Optimism and Espresso Systems, involved extensive interviews to understand how different audiences view Ethereum, identify challenges, and highlight strengths. The report categorizes stakeholders into archetypes, including Guardians defending the original ethos, Pioneers expanding into new frontiers, Translators disseminating ideas, and Challengers addressing perceived stagnation. Other groups include traders, institutions, and Web3 communities. Interviewees described Ethereum using metaphors ranging from "a world computer" and "humanity's coordination layer" to "a trillion-dollar casino" or "MySpace waiting to be displaced," underscoring the divergent perspectives on its core identity and purpose. This tension between idealistic vision and pragmatic realities forms the central theme of the 40-page study. Internal Conflicts and Governance Challenges The "Mirror" report explicitly states that Ethereum's greatest challenge lies in reconciling these divergent visions, addressing issues of governance, culture, and perception, rather than solely focusing on technical roadmaps. This internal strife is compounded by recent controversies surrounding the Ethereum Foundation (EF), including leadership shakeups, internal conflicts, and a significant DeFi investment. In 2024, the EF introduced a formal conflict of interest policy following criticism over two of its researchers, Justin Drake and Dankrad Feist, taking advisory roles with EigenFoundation. This raised concerns about insiders potentially profiting from their influence over protocol development, damaging Ethereum's credibility. Furthermore, the EF committed 50,000 ETH, approximately $165 million, to DeFi protocols to replenish its treasury, which had reportedly shrunk by 39% over the past three years. These internal struggles, leadership changes, and policy adjustments underscore the ongoing efforts to address governance and operational issues within the foundation itself. Market Implications The internal divisions and governance challenges identified in the "Mirror" report introduce uncertainty regarding Ethereum's long-term stability and development direction. Experts have questioned the network's performance, noting a steady decline in the value of ETH versus BTC over approximately three years. While the EIP1559 upgrade in 2021 aimed to make the network deflationary by burning transaction fees, its impact has been limited due to stagnated on-chain activity. This has led to a "layer 2 conundrum," where the proliferation of Layer 2 (L2) solutions captures the value of block space, contributing to "negative momentum" in the ETH price. The report implies that the fragmentation and inconsistent direction between Layer 1 (L1) and L2s are real issues that could hinder Ethereum's competitive standing. The ability of the Ethereum community and foundation to reconcile these divergent visions will be crucial for maintaining investor confidence and fostering future innovation. Broader Context and Future Outlook Despite anchoring the largest crypto ecosystem with billions locked in DeFi protocols and thousands of active developers, Ethereum faces increasing competition from new contenders like Solana. The "Mirror" report underscores that Ethereum's long-term positioning may depend less on throughput benchmarks and more on its community's ability to achieve consensus on its fundamental identity and strategic direction. The perceived "existential crisis" suggests that while Ethereum has achieved significant scale, its internal coherence and governance mechanisms are now under scrutiny. Resolving these internal conflicts, managing the L1/L2 dynamic, and clearly articulating a unified vision will be essential for Ethereum to maintain its dominance and relevance in the evolving Web3 landscape.