Post-quantum security company Project Eleven has signed on Relm Insurance as a development partner for Strongpoint, its custody product for institutions, the two companies announced on Tuesday. Together they will look at whether the steps an institution takes to defend against future quantum computers could be weighed when an insurer underwrites its digital assets.
The companies called the deal “the first partnership to explore post-quantum security as a factor in pricing digital asset insurance.” They also stressed that the work is exploratory. Any effect on underwriting or insurance premiums would depend on further evaluation and on Relm’s own underwriting process, according to the release, and no discount, new policy or timeline was announced.
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What the Partners Will Study
The partners plan to examine how exposed an institution’s keys are, how it signs and approves transactions, how ready it is to migrate, and which outside vendors it depends on. Relm will also give feedback on Strongpoint’s design, including its security controls, its auditability and the kind of evidence a client might hand an insurer to show it is prepared for post-quantum cryptography.
“Quantum computing is a clear example of an emerging threat that should shape the way we assess risk today,” said Joseph Ziolkowski, Relm’s founder and CEO, in the release. He said the work would examine “how institutions identify their exposure, demonstrate effective controls, and prepare for the transition to post-quantum readiness.”
Alex Pruden, Project Eleven’s CEO and co-founder, discussing the partnership on Monday on Unchained said: “I’m excited about partnering with [Relm] for Strongpoint because I think there’s a very real world in which, if you adopt some of these proactive solutions that we talked about, crypto agility, postquantum security, etc I think there’s a cost saving. I think it can save you money on an insurance premium that would otherwise have to go up to account for these known and unknown unknowns.”
Relm, a Bermuda-domiciled specialty carrier founded in 2019, writes coverage for companies in digital assets, AI and other emerging sectors.
Why Custody Is in Focus
A large enough quantum computer could, in theory, work backward from a public key that is already visible to the private key that controls the funds. Project Eleven launched Strongpoint on Oct. 7 with the Zcash Foundation as its first development partner. The platform runs classical and post-quantum signatures side by side and keeps an institution’s approval rules and audit trail apart from the cryptography, so the signing algorithm can be swapped out without rebuilding those controls.
“The open question is whether that transition happens on the institution’s schedule or under pressure,” Pruden said in Tuesday’s announcement.
Coinbase, which puts its share of all bitcoin at about 5%, told Bitcoin developers last week that a quantum-resistant upgrade has to work for big custodians, and Europol earlier this month urged wallet providers to start testing post-quantum upgrades.
Related Listen: One Type of Post-Quantum Cryptography Is Most Popular. Why Is Crypto Trying Out Three?
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