Galaxy Digital is investing up to $5 million to help prepare Bitcoin for a future where quantum computers could pose a serious threat to the cryptocurrency’s security.
The digital asset firm on Tuesday launched the Bitcoin Quantum Readiness Initiative, a multi-pronged effort to fund research, support developers of quantum-resistant technology and convene experts to explore ways to protect the Bitcoin network.
The initiative will include up to $5 million in developer grants, a new research program through Galaxy Research and the formation of a Quantum Advisory Council made up of top academics and cryptography experts.
The first council members for the initiative include University of Calgary professor Barry Sanders, MIT Sea Grant Knauss Fellow Damien Berube and Boston University computer science professor Eran Tromer.
Galaxy opens developer grants
Galaxy said in its statement that the firm expects to begin accepting grant applications 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,” Galaxy founder and CEO Mike Novogratz said in a statement.
The initiative is designed to address a long-term concern often referred to as “Q-Day”, the point at which quantum computers become powerful enough to break the cryptographic systems that currently keep Bitcoin wallets secure.
The money in Bitcoin today is protected by elliptic curve cryptography. That encryption is thought to be very secure against conventional computers, but researchers have long warned that quantum computers that are sufficiently advanced could one day break it using a mathematical technique called Shor’s algorithm.
In such a situation, an attacker could potentially derive a user’s private key from a publicly visible key, generate valid transaction signatures and transfer funds without authorisation.
The biggest risk is thought to be for older or reused Bitcoin addresses where public keys have already been exposed through earlier transactions.
Developers have come up with possible solutions to the problem.
Another option is to encourage users to move their bitcoin into new quantum-resistant wallet addresses before the technology becomes a real danger. Others describe the implementation of new cryptographic signature standards via proposals such as BIP-360 and BIP-361. Any significant modifications to Bitcoin’s protocol would need widespread consensus across the network, a process that could take years.
Quantum risks move higher on the crypto industry’s agenda
Galaxy’s announcement comes as concerns about quantum computing continue to gain attention across the industry.
In May, quantum security firm Project Eleven estimated there is a greater-than-even chance that a quantum computer capable of breaking today’s cryptography could exist by 2033, and possibly as early as 2030. The firm estimated that around 6.9 million bitcoin are currently stored in addresses that could eventually become vulnerable.
A month later, Coinbase’s Quantum Advisory Council urged developers to begin preparing now rather than waiting until quantum computing reaches that stage, estimating that roughly 7 million BTC could require migration to stronger cryptographic protections.
Governments are also ramping up preparations. In June, President Donald Trump signed executive orders boosting the country’s quantum computing and setting a deadline of December 2031 for federal agencies to transition to post-quantum cryptography.
While experts agree that quantum computers that could break Bitcoin’s encryption don’t yet exist, many say planning needs to start long before they do.
Galaxy is also funding research and supporting open-source developers, and bringing together quantum computing experts. It hopes to help ensure the Bitcoin network is ready for a technological shift that could reshape cybersecurity across industries, not just crypto.
