The banking institution HSBC (HSBA.L) has successfully concluded what it claims to be the world’s first testing of a tool that is intended to safeguard susceptible financial data from cybercriminals who are attempting to utilize the power of quantum computers of the next generation to conduct future assaults.
To protect a deal that was taking place on its proprietary platform, HSBC AI Markets, the British bank, stated that it utilized the technology to exchange thirty million euros for United States dollars.
The test, the specifics of which are being revealed here for the very first time, demonstrates how financial institutions are attempting to gain an advantage over cybercriminals who may exploit technological advancements to get access to trade data in global financial systems such as the foreign exchange market, which is valued at $7.5 trillion every day.
“While we take the view that we are some distance away from quantum computers being able to break traditional encryption, the time to prepare for this is now,” said Colin Bell, CEO of HSBC Europe, in an interview with Reuters.
The test conducted by HSBC was carried out on a network that was established by the British telecoms corporation BT (BT.L.). Additionally, Toshiba-developed equipment was utilized, and Amazon Web Services assisted.
According to Andrew Shields, head of quantum technologies at Toshiba Europe, the test is a crucial step in demonstrating the commercial potential of the technology by utilizing fiber networks that are now accessible.
According to Howard Watson, Chief Security and Networks Officer of BT Group, digital infrastructure must remain protected from emerging quantum-based attacks.
According to HSBC, the test assisted the company in planning how it may use a kind of encryption known as quantum key distribution (QKD) by implementing it in its trading systems.
According to the bank, using light particles, QKD can successfully transport secret keys between parties. These keys may then be used to encrypt and decode sensitive data.
“The protection of both the bank’s data and our clients’ data is something that we take with the utmost seriousness,” said Richard Bibbey, global head of foreign currency, emerging market rates, and commodities at HSBC. “We take protection of both sets of data extremely seriously.”
“Were someone to be able to eavesdrop on the flows that go across the largest foreign exchange institutions, they will have a significant amount of information, the capacity to manipulate the market and to understand what trades have been executed before they have been risk-managed.”
Quantum computers can potentially revolutionize various fields, including medical research and the fight against climate change. They are expected to be millions faster than the most powerful supercomputers.
Banks worldwide are currently working on ways to take advantage of the situation and defend themselves from any vulnerabilities that may arise.
Since 2015, the United States alone has been the source of around 297 patent applications for so-called post-quantum cryptography, which refers to systems immune to assaults using quantum computing. This information comes from John Egan, the Chief Executive Officer of L’Atelier, an independent research division of BNP Paribas.
Some experts are skeptical about the immediate practical consequences that the QKD technology may have for the financial markets.
According to Martin Albrecht, a professor of cyber security at King’s College London, the authorities think that many potential end users will find QKD’s specialized technology impractical.
