Project Eleven Raises $20M to Address Quantum Computing Risks in Crypto

Quantum Computing: A Growing Risk for the Crypto Industry

(Source: qdayclock)

Project Eleven recently announced a $20 million fundraising round, valuing the company at $120 million. The team’s primary mission is to help the cryptocurrency sector address the emerging security challenges posed by quantum computing.

Quantum computers, in theory, can perform complex calculations far faster than traditional computers. This raises the possibility that the cryptographic algorithms currently securing crypto assets may not remain impenetrable in the future. The issue is shifting from a long-term hypothesis to a risk the industry must actively address.

Capital Movements: Major Crypto and Tech Investors Join In

This Series A was led by Castle Island Ventures, with participation from Coinbase Ventures, Fin Capital, Variant, Quantonation, Nebular, Formation, Lattice Fund, Satstreet, Nascent Ventures, and former Coinbase CTO Balaji Srinivasan.

The investor lineup signals that quantum security is no longer just an academic topic—it’s now part of the crypto industry’s strategic planning.

Why Is the Quantum Threat Getting Closer?

Most mainstream cryptographic systems are designed under the assumption that breaking their algorithms would take an impractically long time. Quantum computing’s exponential acceleration could upend this premise.

Historically, most Bitcoin investors saw quantum risk as a distant concern. As technology advances, more industry professionals believe the timeline could be dramatically shortened. Project Eleven CEO Alex Pruden notes that he entered the field because he sees real risk emerging within the next five years.

Building Transitional Solutions for the Post-Quantum Era

Project Eleven aims to serve as a bridge for the crypto ecosystem entering the quantum era. Since most cryptocurrency protocols are decentralized and consensus-driven, migrating to quantum-resistant addresses would require nearly all holders to act simultaneously—a significant challenge.

On certain public blockchains with governance or centralized structures, such transitions are more feasible. Project Eleven has partnered with Solana to test migration strategies for quantum threat scenarios. In contrast, Bitcoin’s lack of a central decision-making authority means major protocol changes often spark prolonged debate, making transformation far more difficult.

Beyond Protocols: Focusing on User-Side Security

Alongside public chain collaboration, Project Eleven plans to launch self-custody products, enabling users to secure their crypto assets even before quantum-resistant upgrades are implemented at the protocol level. These solutions aim to provide a practical transitional path while protocol reforms are still underway.

Industry Views: Uncertainty Persists

There’s no definitive answer as to when quantum computing will break current cryptographic systems. Pruden notes that expert estimates range from two to fifty years. Nic Carter of Castle Island Ventures adds that, regardless of when the risk materializes, early preparation is essential.

Project Eleven is not alone in this space—companies like BTQ Technologies are also testing related technologies. However, the field is still in its early stages, and the effects on transaction speed, security, and the evolution of attack methods remain to be seen.

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Conclusion

Project Eleven’s fundraising highlights a shift in the crypto industry’s approach to quantum computing risks. As the threat moves from theory to practical strategy, post-quantum security is becoming a structural challenge that demands proactive solutions. With advancing technology and growing regulatory attention, the evolution of these solutions will profoundly shape the long-term security of crypto assets.