Banks and institutional custodians are moving to upgrade their digital asset systems in anticipation of future threats from quantum computing. Leading companies in the sector, Project Eleven and Quantus, have announced plans to launch an integrated custody solution by the first quarter of 2027. This initiative aims to allow institutions to maintain rigorous internal controls as blockchains begin adopting a variety of quantum-resistant cryptographic standards.
Industry gears up for quantum threats
The timing of a potential quantum computing breakthrough capable of breaking current cryptography remains uncertain. Despite this, industry leaders are urging institutions to prepare migration plans now to avoid last-minute emergency transitions and meet their fiduciary duties. The rapid evolution of artificial intelligence alongside quantum computing has brought increased urgency to these preparations, according to executives in the field.
Project Eleven, a digital asset custody technology company, and Quantus, a cryptography provider, are working to ensure that banks can manage quantum-resistant keys and approve transactions through established hardware security modules, internal policies, and audit systems. Their integration targets a 2027 rollout.
The greatest challenge for traditional finance may not simply be asset migration. Instead, it will be ensuring that existing approval, key management, and auditing frameworks hold firm as different blockchains adopt their own quantum-resistant security standards.
The transition to supporting multiple cryptographic schemes could limit institutional adoption of digital assets. Institutions, however, are already planning for the post-quantum era outside of blockchains.
Alex Pruden, CEO and co-founder of Project Eleven, emphasized that organizations are developing crypto migration strategies to avoid being forced into emergency situations once a viable quantum threat arrives.
Different standards for different chains
No consensus exists among major blockchains such as Bitcoin and Ethereum about which post-quantum signature scheme or migration process to adopt. As a result, banks holding multiple cryptocurrencies may need to secure each with a distinct set of cryptographic procedures. This situation adds complexity to maintaining strict controls over who can approve, sign, and audit digital asset transactions.
Project Eleven’s Strongpoint platform is designed to separate a custodian’s control mechanisms from the underlying signature scheme of any given blockchain. This architecture preserves key approval processes, hardware-based key storage, and audit trails, even if different cryptographic standards are adopted by various networks.
Quantus has opted for the ML-DSA post-quantum signature standard, which the U.S. National Institute of Standards and Technology selected for advanced cryptography. ML-DSA is used for both key generation and transaction signing within Quantus systems.
Christopher Smith, Quantus CEO and co-founder, highlighted that artificial intelligence is accelerating both quantum hardware and software capabilities, further increasing risks. He noted that all portfolio management strategies should take the possibility of a surprise quantum attack into account as a core responsibility.
The risk of a sudden quantum breakthrough should be part of every institution’s decision-making. Now is the interval for preparation, not delay.
Researchers and developers are treating the coming years as a critical window to prepare migration paths for Bitcoin, Ethereum, and other networks, rather than waiting for a quantum event to force immediate action.
Mini dictionary: ML-DSA (Multivariate Large-Degree Signature Algorithm) is a post-quantum cryptographic standard designed to withstand attacks from quantum computers and has been selected by the U.S. National Institute of Standards and Technology for its resilience in key generation and digital signing.
Institutional response and future outlook
While the quantum timeline remains unpredictable, transitioning institutional systems and agreeing on migration standards will require significant coordination among blockchain developers, users, and service providers. Current efforts by companies such as Project Eleven and Quantus reflect the push for proactive upgrades, aiming to manage post-quantum transitions smoothly, rather than under duress.
Pruden stated that institutions are not waiting for consensus on blockchains; many are laying the groundwork for a secure transition that preserves their established security processes, even as cryptographic technologies continue to evolve.
