Project Eleven Teams With Crypto Insurer Relm to Study Quantum Risk in Underwriting

Introduction

Project Eleven, a post‑quantum security firm, has announced a collaboration with Bermuda‑based crypto insurer Relm Insurance to investigate how quantum‑resistant safeguards might factor into underwriting decisions for digital‑asset coverage. The partnership centers on Strongpoint, Project Eleven’s custody platform, and is framed as an exploratory study—no immediate premium adjustments or new policy terms have been disclosed.

Why Quantum Risk Matters for Crypto Custody

A sufficiently powerful quantum computer could, in theory, reverse‑engineer a public key to reveal its private counterpart, jeopardizing funds stored on blockchain networks. While such computers remain speculative, the potential threat has prompted custodians and insurers to consider post‑quantum cryptography (PQC) as a risk mitigation layer. Strongpoint was launched on Oct. 7 with the Zcash Foundation and uniquely runs classical and post‑quantum signatures side‑by‑side, separating approval rules and audit trails from the underlying cryptography. This design allows institutions to swap signing algorithms without overhauling their control frameworks, addressing the question of whether a transition to PQC will be scheduled proactively or forced by external pressures.

Scope of the Study

The joint effort will focus on several key dimensions:

1. Key Exposure Assessment – Evaluating how exposed an institution’s public keys are and the potential impact of a quantum breach.
2. Transaction Signing & Approval – Reviewing the processes institutions use to sign and approve transactions, and how these could be hardened with PQC.
3. Migration Readiness – Determining the readiness of custodians to shift to quantum‑resistant algorithms, including the technical and operational steps required.
4. Vendor Dependency Mapping – Identifying third‑party services that could affect an institution’s overall quantum risk profile.
5. Evidence for Underwriters – Defining the type of auditability and security‑control evidence that clients could present to insurers to demonstrate post‑quantum preparedness.

Relm will feed its underwriting expertise into Strongpoint’s design, offering feedback on security controls, auditability, and the documentation needed for insurers to evaluate quantum risk.

Potential Implications for Insurance Pricing

Both parties stress that the partnership is exploratory. Any influence on underwriting criteria or premium structures will depend on the outcomes of the study and Relm’s internal risk‑assessment models. While Project Eleven’s CEO Alex Pruden suggested that proactive quantum‑security measures could eventually lead to cost savings on premiums, no concrete pricing changes have been announced.

Industry Context

The conversation around quantum‑ready crypto infrastructure is gaining traction. Coinbase recently highlighted the need for quantum‑resistant upgrades that accommodate large custodians, and Europol has urged wallet providers to begin testing PQC solutions. Project Eleven’s Strongpoint platform, which decouples cryptographic algorithms from governance controls, positions it as a testbed for these emerging standards.

Closing Thoughts

The Project Eleven‑Relm collaboration marks a notable step toward integrating quantum‑risk considerations into the insurance ecosystem for digital assets. By systematically examining key exposure, transaction controls, migration pathways, and vendor dependencies, the study aims to lay groundwork for future underwriting frameworks that account for the evolving quantum threat landscape. While immediate effects on policy pricing remain uncertain, the partnership underscores a growing industry consensus: preparing for post‑quantum security is becoming an essential component of risk management in the crypto space.