Galaxy Digital, a Nasdaq-listed financial services firm specializing in digital assets, has launched a comprehensive Bitcoin Quantum Readiness Initiative to prepare the cryptocurrency for potential risks posed by emerging quantum computers.
Three-Pronged Approach to Quantum Security
The initiative encompasses three main pillars: up to $5 million in developer grants for post-quantum cryptographic solutions, an expanded research program through Galaxy Research, and the formation of a Quantum Advisory Council composed of leading academics in the field.
According to the company, the advisory council’s initial members include Barry Sanders, a professor at the University of Calgary, Damien Bérubé, an MIT Sea Grant Knauss Fellow, and Eran Tromer, a computer science professor at Boston University. Galaxy Digital stated it will begin accepting applications for grants immediately.
“As leaders in the digital assets space, we believe it’s important that we help be part of the solution to any potential threat quantum computing poses to Bitcoin,” said Mike Novogratz, founder and CEO of Galaxy Digital.
The group aims to address a scenario known in cybersecurity as “Q-Day.” This milestone represents the moment when a quantum computer can use complex algorithms, such as Shor’s algorithm, to undermine Bitcoin’s current security model. Specifically, an attacker could extract a private key from a public key, allowing them to forge signatures and move funds from any exposed wallet, all without triggering fraudulent flags on the blockchain.
The risk is most acute for wallets using old or frequently reused addresses. Cryptocurrency developers are considering defenses such as migrating funds to quantum-resistant addresses and implementing new signature methods, as outlined in BIP-360 and BIP-361 proposals within the Bitcoin Improvement Proposal (BIP) process. However, these changes involve significant technical coordination and governance decisions, making widespread adoption a lengthy process.
Mini dictionary: Shor’s algorithm, created by mathematician Peter Shor, is a quantum computing algorithm that can efficiently factor large numbers, making it capable of breaking many forms of encryption currently considered secure, including the elliptic curve cryptography used by Bitcoin.
| Proposal | Purpose | Status |
|---|---|---|
| BIP-360 | Introduces a new quantum-resistant signature method for Bitcoin. | Under discussion |
| BIP-361 | Facilitates migration to quantum-secure addresses. | Under discussion |
Industry Steps Up as Quantum Computing Timelines Shorten
Multiple industry voices have warned that the timeline for quantum threats is shortening. Project Eleven, a quantum security company, estimated in a May report that a cryptographically relevant quantum computer could be operational as early as 2030, with a likely window no later than 2033. The firm calculated that approximately 6.9 million Bitcoin remain in addresses vulnerable to quantum attack.
In June, Coinbase’s quantum advisory council encouraged immediate preparations for post-quantum migration, estimating that roughly 7 million BTC are at risk. New developments continue to emerge, with Project Eleven recently introducing a technique enabling users to prove wallet ownership after Q-Day by verifying control of a parent key instead of relying on traditional signatures.
“There’s a gap between the quantum computing world, which is moving fast, and the Bitcoin development world, which is just beginning to engage with post-quantum cryptography in earnest,” stated Alex Thorn, head of Galaxy Research. “Galaxy’s role is to bridge that gap through research that makes the threat legible to investors and policymakers, as well as grants that fund the developers doing the hardest technical work.”
Trump Sets Federal Post-Quantum Deadline
On the government front, President Donald Trump signed two executive orders in June focused on strengthening US leadership in quantum computing and expediting the federal transition to post-quantum cryptography. The executive orders moved the government’s post-quantum readiness deadline to December 2031, reinforcing calls for swift action across both the public and private sector.
Galaxy Digital emphasized that preparing Bitcoin for advanced quantum attacks will require comprehensive collaboration throughout the cryptocurrency ecosystem.
