HSBC announced it’s completed a trial for quantum protection of AI-powered foreign exchange trading using Quantum Key Distribution. The trial safeguarded a €30 million ($32.5mn) trading scenario from euros to US dollars and included technology from BT, Toshiba and Amazon Web Services (AWS).
In July, HSBC became the first bank to join BT and Toshiba’s quantum secure metro network, working in collaboration with AWS – installing quantum infrastructure in their global headquarters in Canary Wharf, UK, that spans 63km via fiber-optic cables to their data center in Slough, UK.
Colin Bell, CEO of HSBC Bank and HSBC Europe, said in a statement: “The quantum revolution is not on the horizon; it’s already here. By investing and experimenting in quantum technologies now, HSBC is not just preparing for the future; we’re shaping it. Today’s trials will define tomorrow’s triumphs. Successfully pioneering quantum protection for our FX trading is a significant step with far-reaching implications for the blueprint of our future cybersecurity.”
HSBC processed 4.5 billion payments for their customers last year, worth an estimated value of £3.5 trillion. The increasing threat of cyber-attacks and the emergence of quantum computers pose a real threat to the financial sector. Waiting until quantum computers become a reality to address this issue risks leaving financial systems vulnerable, as the transition to quantum-resistant encryption takes time.
HSBC global head of FX and Emerging Markets Rates and Commodities, Richard Bibbey said in a statement: “In the world of foreign exchange trading, currency dynamics are evolving faster than ever. Ensuring the security of our client’s data is paramount and we must constantly innovate and stay ahead of the curve. 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 further reinforce our secure trading and transactions.”
The trial was conducted with HSBC’s AI Markets, which uses artificial intelligence (AI) to generate bespoke global financial market analytics and access the bank’s real-time and historic cross-asset data sets, and browse the latest market insights. HSBC’s quantum scientists, cyber-crime experts and trading specialists will use insights generated by this experiment to inform how Quantum Key Distribution can be integrated into most important trading tools to secure them against quantum attacks in the future.