HSBC Successfully Trials Quantum-Resistant Tool for AI-Powered FX Trading
HSBC completed the world’s first trial to protect sensitive trading data from HSBC AI Markets terminal with quantum protection.
HSBC today explored quantum cryptography to secure its highly sensitive trading data against potential cyber threats, including the challenge posed by quantum attacks.
The UK-headquartered bank has completed the world’s first trial to protect its HSBC AI Markets terminal with quantum protection, using Quantum Key Distribution (QKD), to shield a €30 million ($32.4m) trade into dollars.
QKD employs particles of light to transmit secret keys between parties, enabling the encryption and decryption of sensitive data.
Moreover, the bank has carried out this trial through collaboration with BT, Toshiba, and AWS, underscoring HSBC’s proactive approach to safeguarding the assets of its customers and clients from cyber criminals who may exploit advances in computing to access global financial systems’ trading 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 exchange, emerging market rates and commodities at HSBC.
“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.”
Post Quantum-Computing Security: A Rising Concern
Quantum computers, promising to be millions of times faster than today’s supercomputers, have the potential to impact various fields. To taht end, banks globally are not only exploring ways to leverage this technology but also actively working on strategies to shield themselves from potential risks.
A recent survey by the Ponemon Institute, involving 1,426 IT and IT security practitioners, indicates that 61% of respondents are concerned about their organizations’ readiness to address the security implications of post-quantum computing.
As we approach the end of the decade, the impending advent of quantum computers looms large over the realm of cyberspace. The prospect of established cryptographic protocols becoming obsolete soon has become an undeniable reality. The imminent occurrence of what experts are now terming “Q-Day” is rapidly drawing near.
Addressing this challenge head-on, the solution takes shape in the form of Quantum Resistant Cryptographic (QRC) algorithms, alternatively known as Post-Quantum Cryptography (PQC). As the quantum era approaches, these cryptographic methods aim to fortify digital security and safeguard sensitive information against the impact of quantum computing.
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