Crypto VCs Begin Investing in Post-Quantum Security Infrastructure

icon币界网
Share
AI summary iconSummary
Utkarsh Ahuja, founder of Moon Pursuit Capital, said that post-quantum security, cryptographic migration tools, and upgradable infrastructure could attract more crypto VC funding by 2027. Moon Pursuit, SAVA Digital Asset Fund, and 0G Labs led an $8 million seed round for AmericanFortress, which builds quantum-resistant transaction signing solutions. In August 2024, NIST released its first three post-quantum cryptography standards, aiming to phase out vulnerable algorithms by 2035. This move underscores growing interest in blockchain and smart contract security within the crypto space.
CoinDesk reports:

There is no clear timeline for when quantum computing will pose a real threat to existing blockchain encryption systems. However, some crypto venture capitalists believe that preparatory work cannot wait until the risk is imminent, as wallet, node, and asset migrations often require extended timeframes.

Capital is beginning to value mobility.

Utkarsh Ahuja, founder of Moon Pursuit Capital, told crypto.news that before 2027, post-quantum security, cryptographic migration tools, and infrastructure designed for future upgrades may attract more crypto venture capital.

He believes that when evaluating such projects, the focus should not only be on the technology itself, but also on whether the product can integrate with existing networks and minimize disruption to users, custodians, and validators after changes to cryptographic standards.

AmericanFortress raises $8 million in seed funding

Moon Pursuit previously co-led the $8 million seed round for AmericanFortress alongside SAVA Digital Asset Fund and 0G Labs. The company is developing security solutions for existing blockchain wallets and has filed patents related to quantum-resistant transaction signatures.

As disclosed in its design, the ZK-PoSP scheme enables wallets to prove control without exposing the original mnemonic phrase, targeting Bitcoin, Ethereum, and Solana addresses, without requiring users to transfer funds or change private keys.

However, this proposal is still in the planning stage. To implement it on-chain, support through node-level upgrades is still required. The technical documentation also notes that the post-quantum protection capability remains a speculative design and has not yet been validated against real quantum attacks.

Crypto financing leans more toward existing demand.

Galaxy Research data shows that in the first quarter of 2026, venture capital funding in the crypto and blockchain sector totaled approximately $4 billion across 355 deals, a 50% decline from the previous quarter. Of this, trading, exchange, investment, and lending companies collectively raised about $2.6 billion.

Infrastructure ranked second in number of transactions, with 56 deals; privacy and security companies completed 22. Ahuja believes that protocols and applications will continue to receive funding, but more capital may flow toward the underlying systems needed for institutional secure use of digital assets.

NIST has launched post-quantum standards.

The National Institute of Standards and Technology (NIST) has officially released its first three post-quantum cryptographic standards in August 2024 and recommends system administrators adopt them as soon as possible. Its timeline indicates that algorithms vulnerable to quantum attacks will be phased out after 2030 and removed from the standards framework by 2035.

From a broader venture capital perspective, global VC investment reached $227.4 billion across 8,440 deals in the second quarter of 2026. According to KPMG data, funding activity in the quantum computing sector has slowed compared to the 2025 peak, but financing continues to occur.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.