Galaxy has launched a Bitcoin Quantum Readiness Initiative, committing up to $5 million to help developers prepare Bitcoin for potential risks from future quantum computing. The program includes developer grants, research, wallet migration tools, security audits, and a new Quantum Advisory Council intended to support Bitcoin’s long-term cryptographic security.

Initiative Focuses on Future Cryptographic Risks

According to Galaxy, Bitcoin currently depends on elliptic curve cryptography, a system that sufficiently powerful quantum computers could eventually break using Shor’s algorithm, a well-known quantum algorithm capable of factoring the large numbers underlying widely used public-key cryptography. The company said such machines do not exist today, but preparation should begin early because changes to the Bitcoin protocol can require years of coordination across developers, users, infrastructure providers, and other stakeholders. Bitcoin’s past upgrades, such as the SegWit activation in 2017 and the Taproot upgrade in 2021, each took years of proposal, testing, and community consensus-building before deployment.

Mike Novogratz, Galaxy’s founder and chief executive officer, said the initiative reflects the firm’s commitment to supporting research and development aimed at strengthening Bitcoin’s long-term security.

Galaxy also noted that the National Institute of Standards and Technology finalized its first post-quantum cryptography standards in 2024. The company additionally cited a recent executive order that set a 2031 deadline for federal agencies to strengthen defenses against quantum attacks.

Grants, Research, and Advisory Work

Galaxy structured the Bitcoin Quantum Readiness Initiative around three main areas. First, it will provide up to $5 million in grants for work on post-quantum signature schemes, wallet migration tools, implementation reviews, and security audits. Post-quantum signature schemes tend to produce significantly larger signatures than Bitcoin’s current ECDSA signatures, which could affect transaction sizes, block space usage, and fee dynamics on the network.

Second, Galaxy Research will publish ongoing analysis on quantum computing risks and Bitcoin’s preparedness. Alex Thorn, Galaxy’s Head of Firmwide Research, said the effort is designed to help investors, policymakers, and developers better understand emerging challenges related to quantum computing and Bitcoin security.

Third, Galaxy has formed a Quantum Advisory Council to help guide the initiative’s research agenda and technical priorities. The council’s inaugural members include Barry Sanders of the University of Calgary, Damien Bérubé, and Eran Tromer of Boston University.

Galaxy Calls for Broader Industry Collaboration

Galaxy cited CryptoQuant research estimating that about 6.9 million Bitcoin could become vulnerable if quantum computers eventually defeat existing cryptographic protections. At current prices, those holdings would be worth roughly $461 billion.

The company said developers have only begun addressing post-quantum migration, despite the technical and coordination challenges involved. Galaxy invited universities, companies, institutions, and Bitcoin stakeholders to contribute research and funding alongside its initiative.

Barry Sanders said governments and industries are continuing to prepare for advances in quantum computing. He added that Bitcoin should also prepare through coordinated research and technical development.