Belfort Labs: Strategic Analysis of Fully Homomorphic Encryption (FHE)

Belfort Labs is a Belgian deep-tech startup spun out of KU Leuven’s renowned COSIC cryptography lab. It has developed a novel hardware accelerator that can process data entirely in encrypted form – the world’s first purpose-built chip for fully homomorphic encryption. This capability allows organisations to run analytics or machine learning on sensitive data without decryption, greatly enhancing data confidentiality. For example, a 2025 UK Ministry of Defence breach (impacting 19,000 personnel) demonstrated the urgent need for such secure-by-design processing.

Belfort’s innovation, built on decades of European research, thus represents a unique contribution to EU strategic autonomy in secure computing. Positioned at the intersection of civilian and military needs, it bridges academic advances in cryptography with operational requirements for NATO/EU resilience. Its European ownership and technology base mean that encrypted compute – a critical emerging capability – can be deployed within Allied systems without reliance on non-EU vendors. Company: Belfort Labs (Belgian startup) – Technology: Fully homomorphic encryption hardware accelerator.

EU/NATO Alignment: Advanced data sovereignty and cyber resilience (cryptography, AI/ML applications); selected for NATO DIANA innovation programme (2026 cohort). Strategic Value: Enables secure multi-domain operations by keeping data encrypted even during processing, reducing dependence on foreign cryptographic solutions. Interoperability: Transatlantic ties (US DARPA contracts, Silicon Valley investors) coupled with EU design, supporting integration into allied networks while preserving European control. Participation: Rooted in European research (ERC-funded) but no known EDF/PESCO awards; awaiting engagement in EU defense projects.

Deterrence: By hardening data security in communications and AI, Belfort strengthens collective defense against espionage and cyber threats. Assessment: Score 8/10 (Critical European strategic asset) – strong alignment with EDTIB priorities (cyber, AI), nascent program participation (NATO DIANA), high TRL technology (demonstrated via AWS) and solid EU research pedigree.