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.