HSBC is testing quantum key encryption for the protection of client forex trading data
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HSBC has made a move that will be a game-changer in protecting client data by piloting the use of quantum key encryption. The bank’s goal is to try to use the new technology to protect client FX trading data from cyber attacks.
HSBC will become the first British bank to test an advanced data-security system — quantum key distribution — that could help protect trillions of dollars of transactions from hackers https://t.co/rDrA6ozNwD
— Bloomberg (@business) July 5, 2023
Protecting FX data with quantum tech
While the financial industry has seen a number of breakthroughs in terms of financial technology, new payment methods, and increased security, online criminals still always seem to be one step ahead. Now, HSBC hopes to change that by using quantum key encryption.
According to the bank, it armed its AI Markets trading terminal with quantum protection for the trial. It used Quantum Key Distribution which is meant to safeguard a 30 million EUR trading scenario from euros to US dollars.
Richard Bibbey, the bank’s global head of FX and emerging markets rates and commodities, stated that in the world of forex trading, currency dynamics are evolving faster than ever. As a result, ensuring the security of the clients’ data is of the highest importance. This also means that the bank has to constantly innovate and find new ways to protect its customers.
Commenting on the quantum key encryption, he said: “This ground-breaking quantum experiment marks a considerable leap in the world of finance. For the first time, we have leveraged the power of quantum communications to reinforce our secure trading and transactions further.”
HSBC is shaping the future of quantum technology
HSBC has always been the leader when it comes to exploring new applications of quantum technologies with a focus on the financial sector. Earlier this year, in September, the bank worked with Terra Quantum on an experiment that would test the use of quantum technology. The pair sought to use it for optimizing capital allocation.
Before that, in July, HSBC became the first bank to team up with BT and Toshiba’s quantum-secured metro network. The project used Quantum Key Distribution (QKD) to connect two UK sites and protect its global operations from cybersecurity threats of the future.
In addition to that, the bank also entered a multi-year deal with IBM, meant to investigate quantum technology. It is still actively hiring research scientists in order to build dedicated capability in its new innovation team.
Then, there was also its partnership with Quantinuum, which was announced in June. At the time, the bank revealed its partnership with the self-proclaimed largest quantum computing firm in the world. Their focus was, once again, on cybersecurity.
Colin Bell, HSBC’s CEO, said that the quantum revolution is not something that will arrive in the future. Instead, it is already here, which is why HSBC is investing in quantum technologies and doing experiments with it whenever and wherever it can. HSBC’s goal is not only to prepare for the future but to shape it, and its work with quantum solutions will contribute to the further growth of this technology.
