Global banks collaborate on quantum key distribution.
HSBC has signed a Memorandum of Understanding (MoU) to collaborate on quantum security with other global banks.
Signing with Singapore’s central bank, alongside several other banks and technology firms, the group will study the application of Quantum Key Distribution (QKD) to help address quantum computing cyber threats by protecting the exchange of cryptographic keys, reports FSTech.
Warnings of Risks
Previously, the Monetary Authority of Singapore warned of the cybersecurity risks associated with quantum technology, and provided recommendations for financial institutions to safeguard themselves against the identified threats.
The new MoU builds on these initiatives, and provides a collaborative framework for trialling the application of quantum security solutions in financial services. The banks will conduct a QKD proof-of-concept sandbox on financial sector use cases to evaluate its viability, effectiveness and applicability to financial services, and determine the feasibility of using QKD for quantum-safe communications within the financial sector.
They will also validate the security properties of QKD, such as detecting eavesdropping attempts and preventing unauthorised access or tampering of QKD transmissions. This will help to verify QKD’s capability to provide robust security for sensitive data transfers, and enhance trust in its deployment within the sector.
Safeguarding
Vincent Loy, assistant managing director (technology), at the Monetary Authority of Singapore, said: “As quantum technology advances, it is vital for the financial sector to safeguard against potential cybersecurity threats that may be brought about by the technology.
“The proof-of-concept trials will help MAS and financial institutions better understand QKD’s potential impact on operations and address challenges early. These technology trials can also inform and shape technology and cyber risk management policies towards quantum-proofing our financial systems. We are excited to partner the industry on this initiative and look forward to the learnings and experience that it will bring to our financial sector.”
The MoU follows the announcement by NIST from this week of a principal set of encryption algorithms.
Written by
Dan Raywood
Senior Editor
SC Media UK
Dan Raywood is a B2B journalist with more than 20 years of experience, including covering cybersecurity for the past 16 years. He has extensively covered topics from Advanced Persistent Threats and nation-state hackers to major data breaches and regulatory changes.
He has spoken at events including 44CON, Infosecurity Europe, RANT Conference, BSides Scotland, Steelcon and ESET Security Days.
Outside work, Dan enjoys supporting Tottenham Hotspur, managing mischievous cats, and sampling craft beers.
