HSBC announced that it has trialed the first application of quantum-secure technology for buying and selling tokenized physical gold. The bank tested interoperability of its gold tokens using post-quantum cryptography (PQC) to move digital assets safely across distributed ledgers via secure networks. This included the capability to convert HSBC’s gold tokens into ERC-20 fungible tokens, thereby enhancing distribution and interoperability with other DLTs and digital wallets.
As part of the quantum pilot, Quantinuum used post-quantum cryptography algorithms and its Quantum Origin randomness technology to demonstrate protection of digital assets such as HSBC gold tokens from a quantum computing attack, and prevent “store now, decrypt-later” (SNDL) cyber incidents. SNDL is a cyber-technique that has the aim of stealing sensitive data now and then storing it to decipher that data later, using powerful quantum computers in the future.
Philip Intallura, global head of Quantum Technologies at HSBC, said in a statement: “HSBC was the first international bank to offer tokenized physical gold and is now building on that innovation with cutting-edge cybersecurity protection for the future. This pilot successfully demonstrated the viability of deploying these advanced technologies for a real-world business environment.”
Ilyas Khan, Quantinuum founder and chief product officer, said in a statement: “As long-time partners in exploring commercial quantum applications, HSBC and Quantinuum are together building the next generation of financial services featuring quantum-hardened defenses harnessing the power of today’s quantum computers to safeguard sensitive data now and into the future.”
Last year, HSBC was the first global bank to offer tokenized physical gold to institutional investors using distributed ledger technology (DLT). This year saw another first, with the launch of HSBC Gold Token for retail investors in Hong Kong, allowing them to acquire fractional ownership of physical gold. Both launches use the technology of the HSBC Orion digital assets platform.