Galaxy launches Bitcoin quantum computing initiative, commits up to $5 million in developer grants

Crypto financial services firm Galaxy has committed up to $5 million to help prepare Bitcoin for the potential threat posed by quantum computing through a new initiative.

The Bitcoin Quantum Readiness Initiative also includes an advisory council of quantum computing and cryptography experts and a research program focused on the issue. Galaxy said it wants to fund and support work that could help keep Bitcoin secure over the long term.

Bitcoin relies on elliptic curve cryptography, which could eventually be broken by a sufficiently powerful quantum computer. While no cryptographically relevant quantum computer exists today, Galaxy said the expected timeline for developing one is shortening. The National Institute of Standards and Technology finalized its first post-quantum cryptography standards in 2024, while a U.S. executive order set a 2031 deadline for federal agencies to prepare for quantum attacks on existing cryptographic systems.

Bitcoin's decentralized governance means major security upgrades can take years to design, review, test and deploy. The number of developers working on quantum resistance also remains relatively small, Galaxy noted.

"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," said Galaxy's head of firmwide research Alex Thorn.

Galaxy aims to narrow that gap by publishing research and funding developers working on technical solutions, Thorn added.

The initiative follows similar efforts across the crypto industry. Coinbase formed an independent advisory council on quantum computing and blockchain in January and published its first position paper in April. The 51-page paper said quantum computers do not pose an immediate threat to blockchains but that preparations should begin now because moving to post-quantum cryptography could take years.

Michael Saylor's Strategy also announced plans for a Bitcoin Security Program during its fourth-quarter earnings call in February. Work is also underway at the protocol level via BIP-360 and BIP-361 proposals. Other blockchain ecosystems are making similar preparations, including Ethereum and XRP Ledger.

The Galaxy Bitcoin Quantum Readiness Initiative

Galaxy said it will begin accepting grant applications immediately. Funding will be awarded based on milestones to developers and researchers working on quantum-resistant transaction proposals, post-quantum signature schemes for bitcoin, wallet and custodian migration tools, and security audits of proposed implementations.

The Quantum Advisory Council will review grant proposals, help guide Galaxy's research, and advise the company on quantum preparedness. Its inaugural members are Barry Sanders, Professor and Scientific Director of Quantum City at the University of Calgary; Damien Bérubé, MIT Sea Grant Knauss Fellow; and Eran Tromer, Professor of Computer Science at Boston University.

As part of the initiative, Galaxy's research team will publish ongoing analysis of quantum computing risks to bitcoin and efforts to address them for institutional investors, policymakers and the developer community.

Galaxy said it also welcomes other institutions and bitcoin stakeholders interested in co-funding grants, contributing research or developing post-quantum tools.