Lastwall expands with $16 million for quantum defenses

A $16 million investment will allow Lastwall, a New Brunswick-based cybersecurity firm, to expand its operations in Canada and proactively defend against future quantum cyberattacks. The funding supports Lastwall’s work to secure digital systems before the emergence of quantum computers capable of breaking current cryptography. The company’s headquarters in Fredericton positions the city as a developing hub for advanced cybersecurity focused on this emerging threat.

Lastwall Secures $16 Million for Quantum Cybersecurity Expansion

Lastwall is actively building defenses against a threat that does not yet exist; the company recently secured $16 million to expand its quantum cybersecurity operations within Canada. This investment allows Lastwall to proactively address vulnerabilities posed by future quantum computers, rather than reacting to breaches as they occur, a strategy Karl Holmqvist, founder and CEO, describes as essential for long-term security, the company says.

The company’s platform employs identity-based credentials, including biometric data, to fortify systems against intrusion, a method Holmqvist asserts is more robust than conventional two-factor authentication. The urgency stems from the potential for “store now, decrypt later” attacks, where malicious actors capture encrypted data with the intention of deciphering it once quantum computing power matures; Holmqvist explained that this is a problem when secrets need to remain confidential.

Communications Security Establishment Canada acknowledges the emerging risk, noting that experts predict quantum computers capable of breaking current encryption could emerge by the 2030s. As a result, organizations must invest in quantum-resistant technologies to safeguard sensitive data and systems, said Janny Bender Asselin, a spokesperson for the agency.

Lastwall’s approach mirrors a broader governmental shift toward bolstering national resilience through domestic technological capabilities; the government has set 2031 as the target date for migrating high-priority systems to post-quantum cryptography. Holmqvist believes a sovereign Canadian capacity in cybersecurity is vital, stating, “We want to make sure we are capable of standing on our own two legs here in Canada.” The company partnered with the U.S. Department of Defense three years after its launch.

The company is now focused on expanding its presence within Canada, emphasizing the platform’s ability to protect critical infrastructure sectors like power, water, and manufacturing. Holmqvist illustrated the need for a more sophisticated security model with an analogy: “If someone is breaking into your house and they smash the window, your alarm system goes off. If they have the key to the front door and the alarm code, the alarm systems don’t go off.”

Impending Quantum Computing Threat to Current Cryptography

Lastwall received a $16 million investment intended to bolster Canada’s defenses against a future threat: quantum cyberattacks. This funding prioritizes proactive security measures, preparing for vulnerabilities that do not yet exist, rather than responding to current breaches.

Karl Holmqvist, founder and CEO of Lastwall, explains that the emergence of sufficiently powerful quantum computers could compromise the cryptography safeguarding essential online systems. He said, “It means that all the things we do online, from banking to running power plants to controlling water systems and parts of a hospital, all of those things could become susceptible to an attack.”

Holmqvist argues these methods offer a stronger defense than traditional two-factor authentication, which can itself be compromised. Bender Asselin confirmed that the Government of Canada is taking steps to strengthen national resilience by expanding domestic capabilities and diversifying the supply and procurement of cryptographic technologies.

“Store Now, Decrypt Later” Campaigns & Data Capture

Lastwall, a New Brunswick-based cybersecurity firm, is actively addressing a looming threat beyond the immediate capabilities of quantum computers: the capture of encrypted data for future decryption. This proactive threat demands immediate attention, as compromised data remains vulnerable for years to come.

The Communications Security Establishment Canada corroborates this assessment, noting that essential services, from financial transactions to critical infrastructure, rely on cryptography for security. Holmqvist added, underscoring the need for immediate action rather than delayed upgrades, “My point of view is I really hope it’s a long time before these attacks are possible, but I think it’s coming faster than people think.” The firm’s approach aims to ensure only authorized individuals gain entry to systems, mirroring a physical security analogy: a key and alarm code bypass defenses, while a broken window triggers an alert.

Canada Prioritizes Sovereign Quantum-Resistant Technologies

This funding signals a strategic shift towards proactive, sovereign technological capabilities in the face of advancing quantum computing, rather than waiting for the emergence of exploitable quantum attacks. Bender Asselin emphasized the government’s commitment to investing in Canadian industry and emerging technologies, creating opportunities for domestic companies to contribute to national security and reduce reliance on external sources. “We live in a new era now, and we need to be more resilient,” he said.