SEALSQ Outlines Strategic Steps to Protect Cryptocurrencies with Post-Quantum Technology and Advances NIST Certification with VaultIC 408

Rhea-AI Summary

SEALSQ (NASDAQ: LAES) has announced two major developments: a strategic roadmap to protect cryptocurrencies against quantum computing threats and the successful NIST FIPS 140-3 testing of its VaultIC 408 Secure Microcontroller at Security Level 3.

The company's Post-Quantum Cryptocurrency Protection Roadmap includes integration of NIST-selected algorithms (CRYSTALS-Kyber and CRYSTALS-Dilithium), hardware-based protection for crypto wallets, quantum-resilient key management, and secure mining systems. The initiative aims to safeguard digital assets against future quantum computing threats.

The VaultIC 408 achievement strengthens SEALSQ's position in IoT and smart grid solutions, with the device already securing millions of smart grid hubs globally. The certification positions SEALSQ to capture growth in the IoT market, projected to reach $1.1 trillion by 2030, and the Smart Grid market growing at 20.8% CAGR through 2032.

Positive

• VaultIC 408 successfully passed NIST FIPS 140-3 testing at Security Level 3
• Strong market positioning for IoT market projected at $1.1 trillion by 2030
• Smart Grid market growing at 20.8% CAGR through 2032
• VaultIC 408 already deployed in millions of smart grid hubs globally

Negative

• Final NIST CMVP certification still pending for VaultIC 408
• Current cryptographic systems vulnerable to quantum computing threats

Insights

Post-Quantum Cryptography Specialist

SEALSQ advances both post-quantum crypto protection solutions and achieves critical FIPS 140-3 security validation for its VaultIC 408 microcontroller.

SEALSQ's announcement represents a strategic positioning at the intersection of two critical security domains: post-quantum cryptography and hardware security certification. The company is developing a comprehensive approach to the quantum threat facing cryptocurrencies by integrating NIST-selected algorithms (CRYSTALS-Kyber and CRYSTALS-Dilithium) into blockchain protocols - a technically sound approach aligned with industry best practices.

Their VaultIC 408 secure microcontroller achieving FIPS 140-3 Security Level 3 testing validation is particularly significant. This is the most rigorous U.S. government standard for cryptographic modules, exceeding the previous FIPS 140-2 requirements with more stringent demands for physical security and operational resilience. Level 3 certification specifically requires enhanced physical security mechanisms designed to detect and respond to attempts at physical access or modification - making it suitable for high-security applications.

The company's dual focus on both software algorithms and hardware security elements demonstrates a sophisticated understanding of defense-in-depth principles. By securing the entire chain from the hardware root of trust through the cryptographic protocols, SEALSQ is building a more comprehensive security posture than competitors focused on just one layer of the security stack.

The company's relationship with UL Verification Services (a renowned testing laboratory) and their presence on the NIST CMVP Modules In Process List provides credible third-party validation of their security claims. The specific hardware and firmware version details mentioned (Hardware Version: AT90SO28RS rev A, Firmware Version: 1.2.4.1) indicate a mature product rather than a conceptual prototype.

Semiconductor Industry Analyst

SEALSQ's announcement demonstrates strategic foresight in two high-growth semiconductor niches: post-quantum cryptography and IoT security chips. The company is leveraging its semiconductor expertise to address both the theoretical future threat (quantum computing) and immediate security needs (IoT/smart grid protection).

The VaultIC 408's FIPS 140-3 Level 3 validation positions SEALSQ advantageously in regulated markets that require this certification. This includes government contracts, critical infrastructure, and financial services - all premium segments with higher margins than consumer markets. The mention of the microcontroller already securing "millions of smart grid hubs" for the UK's Smart Metering Implementation Programme indicates existing commercial deployment at scale, not just speculative future applications.

The technical specifications reveal a focus on power efficiency and compact design - critical for edge computing and IoT applications where battery life and physical footprint matter significantly. The integration of hardware-based encryption, authentication, and key management within a tamper-resistant secure element shows architectural sophistication beyond basic security chips.

Market timing appears favorable with the IoT market projected to reach $1.1 trillion by 2030 and the Smart Grid market growing at a 20.8% CAGR through 2032. SEALSQ is targeting established applications (smart grid) while positioning for emerging markets (drone security, satellite IoT). This diversification across multiple vertical markets reduces dependency on any single industry segment.

The company's dual-track approach - enhancing near-term revenue with FIPS-certified products while developing post-quantum solutions for long-term market positioning - creates a stronger competitive profile than semiconductor firms focused solely on either current or future technologies.

Geneva, Switzerland, Sept. 02, 2025 (GLOBE NEWSWIRE) -- SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or "Company"), a company that focuses on developing and selling Semiconductors, PKI, and Post-Quantum technology hardware and software products, today announced a comprehensive roadmap to protect cryptocurrencies against the looming threat posed by quantum computing. The Company also revealed that its VaultIC 408 Secure Microcontroller has successfully passed NIST FIPS 140-3 testing at Security Level 3 (overall), further strengthening its leadership in secure IoT and smart grid solutions.

Understanding the Quantum Threat

Quantum computers, once scaled to full capability, are expected to break traditional cryptographic systems that currently safeguard digital assets. This poses a systemic risk to the security and stability of the global cryptocurrency market, with billions of dollars of value at stake.

A particular threat from quantum computers is to public-key cryptosystems (based on classical assumptions). For instance, the ed25519 digital signature scheme is completely broken if a quantum computer solves the underlying discrete logarithm problem.

In contrast, symmetric-key cryptosystems, such as AES block ciphers, do not rely on such mathematical assumptions and are therefore safe from Shor’s algorithm. Nevertheless, due to Grover’s algorithm, any symmetric-key cryptosystem would incur a significant security loss. This can be mitigated rather easily, for example, by simply doubling the key length.

To that end, Hedera and other leading blockchain networks follow the CNSA standard, which is what the US government uses to protect its own Top Secret information. The CNSA standard requires at least 256-bit AES keys (used in TLS connections) and 384-bit SHA-2 hashes. With these larger key sizes, both AES and SHA-2 are generally considered to be safe from future quantum computers, even if they can be built very large.

To address this challenge, SEALSQ is advancing its Post-Quantum Cryptocurrency Protection Roadmap which includes:

1. Integration of Post-Quantum Algorithms into Blockchain Protocols
   SEALSQ is collaborating with its blockchain partner to embed NIST-selected post-quantum algorithms, including CRYSTALS-Kyber and CRYSTALS-Dilithium, into blockchain infrastructures to secure transaction validation and wallet authentication.
2. Hardware-Based Protection for Crypto Wallets
   SEALSQ is offering crypto wallets manufacturers to integrate its Quantum resistant secure element chips and Trusted Platform Modules (TPMs).
3. Quantum-Resilient Key Management
   SEALSQ is rolling out a next-generation Public Key Infrastructure (PKI) platform that integrates quantum-safe certificates to protect private keys used across exchanges and custody services.
4. Secure Mining and Staking Systems
   Through post-quantum cryptography integration, SEALSQ will secure consensus mechanisms such as Proof-of-Work and Proof-of-Stake against future quantum interference.
5. Partnerships and Ecosystem Expansion
   SEALSQ is collaborating with blockchain developers, exchanges, and regulators to establish quantum-resilient industry standards, ensuring a coordinated response to the quantum threat.
   
   

VaultIC 408 Achieves FIPS 140-3 Security Level 3
As per the UL Labs report, VaultIC 408 meets FIPS 140-3 requirements, advances NIST certification and strengthens SEALSQ’s leadership in secure IoT and smart grid solutions.

SEALSQ’s VaultIC 408 Secure Microcontroller (Module Name: VaultIC408 1.2.4, Hardware Version: AT90SO28RS rev A, Firmware Version: 1.2.4.1) has successfully passed NIST FIPS 140-3 testing at Security Level 3 (overall), as confirmed by a Validation Test Report submitted by UL Verification Services Inc. to the Cryptographic Module Validation Program (CMVP). The module’s status is listed on the CMVP Modules In Process List at NIST CMVP.¹

The VaultIC 408 is a state-of-the-art secure microcontroller designed to safeguard connected devices against advanced cyber threats. It integrates hardware-based encryption, authentication, and key management within a tamper-resistant secure element, ensuring robust data integrity and device security. Optimized for IoT and Smart Grid applications, the VaultIC 408 supports low-power, compact designs for smart homes, industrial automation, healthcare, automotive, and digital identity solutions. It secures millions of smart grid hubs for renowned device makers supplying, for instance, the UK’s Smart Metering Implementation Programme (SMIP) and is also deployed in smart locks, drones, and satellite IoT platforms.

Carlos Moreira, CEO of SEALSQ commented, “UL Labs’ report regarding VaultIC 408’s FIPS 140-3 Level 3 compliance validates SEALSQ’s commitment to delivering cutting-edge secure semiconductors. This achievement strengthens our ability to provide trusted solutions for global IoT and critical infrastructure markets.”

The NIST FIPS 140-3 standard is the global benchmark for cryptographic module security, surpassing FIPS 140-2 with stricter requirements for algorithms, physical security, and operational resilience. It is mandated for U.S. federal agencies and widely adopted in energy, healthcare, defense, and financial sectors. UL Labs, accredited by the National Voluntary Laboratory Accreditation Program (NVLAP) under Lab Code 100432-0, conducted rigorous testing to ensure compliance. The submitted Validation Test Report positions VaultIC 408 for final NIST CMVP certification, expected in the coming months.

This milestone reinforces SEALSQ’s leadership in delivering high-security hardware for Internet of Things (IoT) ecosystems, Smart Grid infrastructure, and other critical applications. With the IoT market projected to reach $1.1 trillion by 2030 and the Smart Grid market growing at a 20.8% CAGR through 2032, SEALSQ is well positioned to capture rising demand for secure semiconductors.

Mr. Moreira, concluded, “The cryptocurrency economy and the IoT industry cannot wait for quantum computers to arrive before strengthening defenses. SEALSQ’s post-quantum technologies provide the necessary tools to safeguard digital assets, critical infrastructure, and global communications before existing cryptographic standards become obsolete. By embedding quantum-resistant security at the core of our solutions, we are ensuring that the digital economy of the future remains secure, trustworthy, and resilient. Our mission extends beyond protecting cryptocurrencies and IoT networks. We are building the foundation for a truly quantum-safe world where innovation can thrive without compromise.”

About SEALSQ:
SEALSQ is a leading innovator in Post-Quantum Technology hardware and software solutions. Our technology seamlessly integrates Semiconductors, PKI (Public Key Infrastructure), and Provisioning Services, with a strategic emphasis on developing state-of-the-art Quantum Resistant Cryptography and Semiconductors designed to address the urgent security challenges posed by quantum computing. As quantum computers advance, traditional cryptographic methods like RSA and Elliptic Curve Cryptography (ECC) are increasingly vulnerable.

SEALSQ is pioneering the development of Post-Quantum Semiconductors that provide robust, future-proof protection for sensitive data across a wide range of applications, including Multi-Factor Authentication tokens, Smart Energy, Medical and Healthcare Systems, Defense, IT Network Infrastructure, Automotive, and Industrial Automation and Control Systems. By embedding Post-Quantum Cryptography into our semiconductor solutions, SEALSQ ensures that organizations stay protected against quantum threats. Our products are engineered to safeguard critical systems, enhancing resilience and security across diverse industries.

For more information on our Post-Quantum Semiconductors and security solutions, please visit www.sealsq.com.

Forward-Looking Statements
This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include SEALSQ's ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ's filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.

SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

SEALSQ Corp. Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@sealsq.com

SEALSQ Investor Relations (US) The Equity Group Inc. Lena Cati Tel: +1 212 836-9611 lcati@theequitygroup.com

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¹ Note: The Cryptographic Module Validation Program (CMVP) Modules In Process and Implementation Under Test (IUT) Lists are provided for information purposes only. Participation on the list is voluntary and is a joint decision by the vendor and Cryptographic Security and Testing (CST) laboratory. Modules are listed alphabetically by vendor name. Posting on the list does not imply guarantee of final validation.

FAQ

What is SEALSQ's strategy to protect cryptocurrencies from quantum computing threats?

SEALSQ is implementing NIST-selected post-quantum algorithms, offering hardware-based protection for crypto wallets, developing quantum-resilient key management, and securing mining systems through post-quantum cryptography integration.

What certification did SEALSQ's VaultIC 408 achieve in 2025?

The VaultIC 408 Secure Microcontroller successfully passed NIST FIPS 140-3 testing at Security Level 3, as confirmed by UL Verification Services Inc.

How is SEALSQ positioned in the IoT and Smart Grid markets?

SEALSQ is well-positioned with its VaultIC 408 already securing millions of smart grid hubs, targeting an IoT market projected to reach $1.1 trillion by 2030 and a Smart Grid market growing at 20.8% CAGR through 2032.

What are the key features of SEALSQ's VaultIC 408?

VaultIC 408 is a secure microcontroller with hardware-based encryption, authentication, and key management within a tamper-resistant secure element, designed for IoT and Smart Grid applications.

How does quantum computing threaten current cryptocurrency security?

Quantum computers can potentially break traditional cryptographic systems, particularly public-key cryptosystems like ed25519 digital signature scheme, putting billions of dollars of cryptocurrency value at risk.