Project Eleven has agreed a development partnership with Bermuda-based Relm Insurance to examine how post-quantum security could be incorporated into the underwriting of digital asset insurance.
The companies will focus on Project Eleven’s institutional custody platform, Strongpoint, which was developed to address the risks posed by advances in quantum computing. The system combines conventional and post-quantum signing methods, enabling financial institutions to update their cryptographic algorithms without interrupting existing approval processes or audit records.
The partnership will assess how post-quantum controls can be included in digital asset risk models. Relm will also provide advice on Strongpoint’s design, with the aim of ensuring custody infrastructure can produce the audit trails and risk evidence required by insurers.
Experts have warned that a sufficiently powerful quantum computer could use exposed public keys to derive private keys, potentially leaving digital assets vulnerable to theft or compromise.
“Every institution holding digital assets will eventually need to prepare for post-quantum cryptography. The open question is whether that transition happens on the institution’s schedule or under pressure,” said Alex Pruden, CEO and co-founder of Project Eleven.
“Insurance plays a critical role in how markets assess and manage risk. We believe there is an opportunity for institutions that invest in stronger post-quantum defenses to eventually see that reflected in how their risk is evaluated.”
Joseph Ziolkowski, founder and CEO of Relm Insurance, said insurers needed to consider how technological developments could alter the risks facing the sector.
“Insuring exposures across the digital asset ecosystem requires underwriters to anticipate how risks will evolve,” Ziolkowski said. “Quantum computing is a clear example of an emerging threat that should shape the way we assess risk today.”
“Our work with Project Eleven will explore how institutions identify their exposure, demonstrate effective controls, and prepare for the transition to post-quantum readiness.”
The agreement is exploratory at this stage. Any effect on insurance underwriting requirements or premium rates will be determined after further assessment and through Relm’s independent underwriting procedures.
The initiative comes as specialty insurers broaden their coverage of emerging and high-risk industries. Relm Insurance, which is based in Bermuda and specialises in digital assets and cannabis, has also launched a dedicated kidnap and ransom insurance product for Web3 and crypto executives.
That product was introduced after an increase in physical threats, extortion attempts and targeted attacks involving prominent digital asset founders and executives. Their public profiles can make them targets for ransom and extortion schemes.
Through the partnership with Project Eleven, Relm is examining technical security risks alongside more traditional threats. Its wider approach now includes both physical protection and the assessment of defences against potential quantum-related vulnerabilities across the digital asset industry.
