Project Eleven and Relm Insurance have launched a development partnership to examine how quantum‑computing threats could reshape digital‑asset insurance underwriting.
With quantum capabilities continuing to advance, the risk that powerful machines could derive private keys from exposed public keys has become a central concern for institutional custodians and insurers.
The collaboration centers on Project Eleven’s Strongpoint platform, a custody system designed to help institutions upgrade cryptographic algorithms without disrupting audit trails or approval workflows.
New Frontier for Digital Asset Insurance
Project Eleven and Bermuda‑based Relm Insurance’s partnership shows how insurers evaluate emerging risks in the digital asset ecosystem. The two firms will jointly explore how post‑quantum security controls can be integrated into underwriting frameworks for Web3 clients.
Digital‑asset insurance has historically focused on operational risks such as custody breaches, smart‑contract failures, and exchange insolvencies.
Quantum computing threats introduce a fundamentally different challenge: the possibility that cryptographic primitives underpinning blockchain networks could be broken, exposing private keys and compromising asset security.
As quantum research accelerates globally, insurers are increasingly assessing how these risks could affect policy structures, premiums, and coverage limits.
Relm Insurance, known for underwriting high‑risk and emerging sectors, sees quantum threats as a natural extension of its mandate.
The company already offers specialized coverage for digital‑asset firms and executives, including kidnap‑and‑ransom insurance tailored to Web3 leaders facing physical and extortion‑related threats.
Quantum Threats: A Growing Concern for Insurers
Quantum computing risks are not theoretical. Experts warn that sufficiently powerful quantum computers could derive private keys from exposed public keys, enabling attackers to compromise wallets, steal assets, or manipulate blockchain networks.
The risks pose challenges to insurers, as traditional underwriting models rely on historical data, actuarial analysis, and established risk categories.
Quantum threats, by contrast, represent a future‑oriented risk with limited historical precedent. Insurers must evaluate:
- How likely quantum attacks are within the lifespan of a policy
- Whether clients have implemented quantum‑resilient controls
- How custody infrastructure can demonstrate auditability and risk evidence
- How premiums should reflect quantum‑related exposure
Relm Insurance’s CEO, Joseph Ziolkowski, stated that underwriting digital‑asset exposures requires anticipating how risks will evolve. Quantum computing, he noted, is a clear example of an emerging threat that should shape risk assessment today rather than later.
Integrating Post‑Quantum Controls into Risk Models
Under the partnership, Project Eleven and Relm will examine how post‑quantum security controls can be incorporated into digital‑asset risk models. The goal is to evaluate how institutions identify quantum exposure, demonstrate effective controls, and prepare for the transition to quantum‑resilient cryptography.
Relm will also advise on Strongpoint’s design to ensure that custody infrastructure provides the auditability and risk evidence required by underwriters. This is essential because insurers must be able to verify that clients have implemented appropriate safeguards before offering coverage or adjusting premiums.
The collaboration remains in an exploratory phase, and any impact on underwriting standards or premium structures will be determined through Relm’s independent underwriting process.
Changing Risk Landscape for Digital Assets
The digital asset ecosystem is evolving rapidly, with new threats emerging alongside technological innovation. Quantum computing represents one of the most significant long‑term risks, but it is not the only one.
Relm Insurance’s recent launch of kidnap‑and‑ransom insurance for Web3 executives highlights the growing need to address both physical and technological threats. High‑profile founders and executives are increasingly targeted due to their public visibility and perceived access to valuable digital assets.
Through the merging of traditional risk coverage with post‑quantum security evaluation, Relm aims to provide comprehensive protection for digital‑asset firms navigating a complex threat environment.
