Project Eleven Secures $20M to Defend Crypto's $4T Ecosystem From Quantum Threat

NEW YORK, NY – January 14, 2026 – In a move that highlights a growing urgency to address a future, high-stakes threat to the digital asset world, Project Eleven has announced a $20 million Series A funding round. The investment, led by Castle Island Ventures with significant participation from Coinbase Ventures, is earmarked to prepare the crypto industry's foundations for the era of quantum computing—a technological leap that could render today's cryptographic security obsolete.

The funding arrives as the clock ticks on the viability of elliptic curve cryptography (ECC), the public-key standard that secures over $4 trillion in digital assets across networks like Bitcoin and Solana. Advances in quantum computing threaten to break this encryption, creating what many experts see as an existential risk to the entire ecosystem.

"As quantum capabilities advance, the stakes couldn't be higher. We can't afford to ignore this existential risk posed to the digital asset ecosystem," said Alex Pruden, CEO and Co-Founder of Project Eleven. "Trillions in value depend on these cryptographic assumptions. Networks like Bitcoin take years to upgrade because they're governed cautiously by design. We're focused on making the transition practical now, so the industry can migrate deliberately instead of improvising under pressure."

A Ticking Clock for Cryptography

The threat, once a distant theoretical problem, is rapidly becoming a concrete planning priority for governments and industries worldwide. The National Institute of Standards and Technology (NIST) has already begun finalizing its first suite of post-quantum cryptography (PQC) standards, recommending a phased transition away from vulnerable algorithms between now and 2035. For high-risk systems, that timeline is even more aggressive, with some analysts predicting that state-level actors could possess decryption capabilities as early as 2028.

At the heart of the issue is Shor's algorithm, a quantum algorithm that can efficiently find the prime factors of large numbers. This capability would allow a sufficiently powerful quantum computer to derive a private key from a public key, effectively shattering the security model of most current blockchains. This would enable attackers to forge transactions and steal funds from any vulnerable wallet. According to analysis from Deloitte, as much as 25% of all Bitcoin in circulation could be susceptible to such an attack.

An even more immediate concern is the "harvest now, decrypt later" strategy. Malicious actors can already be collecting vast amounts of encrypted blockchain data today, storing it with the intention of decrypting it once quantum computers become powerful enough. For an industry built on the promise of cryptographic certainty, this long-term risk undermines its core value proposition.

Building the Bridge from Research to Reality

Project Eleven positions itself as the crucial intermediary tasked with turning complex post-quantum research into deployable, real-world solutions. The company is developing a suite of tools designed to make the daunting, multi-year migration to new cryptographic standards a manageable process for networks and institutions. These tools include readiness assessments to identify vulnerabilities, sandboxed test environments for migration trials, and sophisticated deployment sequencing to manage the upgrade process.

"Useful quantum computing is the biggest and most complex threat public blockchains have ever faced," said Nic Carter, General Partner at Castle Island Ventures, who will join Project Eleven's board. "Project Eleven is building the practical bridge from research to real-world deployment."

This practical approach is already being demonstrated. The company has created "Yellowpages," an application that allows Bitcoin holders to generate post-quantum keys for their assets, creating a verifiable claim to their holdings in a future, quantum-safe environment. More significantly, Project Eleven recently collaborated with the Solana Foundation to build and deploy a fully functioning Solana testnet that processes transactions using post-quantum digital signatures. The successful test proved that integrating quantum-resistant primitives is possible even on a high-performance network without sacrificing scalability.

A Coalition Against a 'Key Apocalypse'

The strong backing from venture capital heavyweights like Castle Island Ventures and Coinbase Ventures signals a strategic shift in the industry. The investment is not just a bet on a single company, but an acknowledgment that the foundational security of the entire digital asset class requires immediate and specialized attention. For an exchange like Coinbase, ensuring the long-term integrity of the assets it custodies and trades is paramount. For a thesis-driven firm like Castle Island, securing the infrastructure of monetary networks is a core part of its investment strategy.

Project Eleven's focus on providing migration tools for existing blockchains distinguishes it from other players in the quantum-resistant space. While projects like the Quantum Resistant Ledger (QRL) are building new blockchains from the ground up with quantum-safe cryptography, Project Eleven is tackling the immense challenge of upgrading established, high-value networks.

This work is inherently collaborative, requiring deep engagement with the protocol teams and communities of major blockchains. The partnership with the Solana Foundation is a key example, involving a full threat assessment of the network's validator identities, user wallets, and signature schemes before implementing the testnet. This hands-on approach is vital for an ecosystem where upgrades are not centrally mandated but must be adopted through community consensus.

The Long Road to Quantum Resilience

Despite the progress, the path to making the entire digital asset ecosystem quantum-resistant is long and fraught with challenges. The cautious governance and long upgrade cycles of decentralized networks like Bitcoin mean that any fundamental change to their cryptographic core will take years of development, testing, and consensus-building.

With its fresh capital infusion, which follows a $6 million seed round in 2025, Project Eleven plans to accelerate its work. The company is preparing for a major product release in early 2026, which will expand its capabilities to serve institutions, protocols, and end-users seeking to future-proof their systems.

The initiative represents a critical maturation of the blockchain industry, moving from a focus on growth and adoption to a serious-minded effort to secure its foundations against the next generation of systemic threats. By providing the tools and expertise for a deliberate, proactive migration, Project Eleven and its backers are working to ensure the quantum era begins with a planned upgrade, not a catastrophic failure.