Project Eleven and Relm Explore Quantum Risks in Crypto Insurance

Assessing Post-Quantum Risk Models

Post-quantum security firm Project Eleven announced a development partnership on Tuesday with Relm Insurance to explore how quantum computing threats can be evaluated within digital asset insurance underwriting.

The collaboration centers on Project Eleven’s flagship institutional custody platform, Strongpoint. Built to address emerging quantum computing risks, Strongpoint combines classical and post-quantum signing methods, allowing financial institutions to upgrade cryptographic algorithms without disrupting existing approval workflows or audit records.

As quantum computing technology progresses, experts warn that a powerful enough quantum computer could derive private keys from exposed public keys, exposing digital assets to theft or compromise.

Under the partnership, Relm and Project Eleven will examine how post-quantum security controls can be integrated into digital asset risk models. Relm will also advise on Strongpoint’s design to ensure custody infrastructure provides the necessary auditability and risk evidence required by underwriters.

“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.”

Evolving Risk Landscape in Digital Assets

Joseph Ziolkowski, founder and CEO of Relm Insurance, emphasized the necessity of anticipating technological shifts in underwriting.

“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 companies noted that the partnership is currently exploratory. Any potential impact on insurance underwriting criteria or premium rates will depend on further evaluation and Relm’s independent underwriting procedures.

The initiative comes as specialty insurers expand risk coverage for emerging and high-risk sectors. Relm Insurance, a Bermuda-based insurer specializing in digital assets and cannabis, launched a specialized kidnap and ransom insurance product tailored for Web3 and crypto executives.

The move was prompted by a surge in physical threats, extortion, and targeted attacks against high-profile digital asset founders and executives, whose public exposure often makes them targets for ransom and extortion schemes. By pairing traditional risk coverage with post-quantum defense evaluations, Relm is expanding its focus on both physical and technical threat mitigation across the digital asset sector.