Entities such as Coinbase or other large custodians may be hesitant to transition to newer cryptography such as Schnorr signatures because they have already invested in audited processes, libraries, and tools tailored to their current systems. Despite Schnorr signatures being cryptographically proven as secure and offering long-term benefits, the reluctance to switch is understandable given that related protocols like MuSig and FROST are relatively new and not yet widely adopted.

Additionally, the slow pace at which exchanges have adopted the support for P2TR outputs for withdrawals exemplifies this cautious approach. The integration process was not only slow but also arduous, pointing to a general trend of resistance to change within the industry. This further underscores the notion that organizations might not rush to embrace new cryptographic solutions until they have been thoroughly tested and proven in practice.