of Monetary Authority of Singapore (MAS) has partnered with DBS, HSBC, OCBC, UOB, SPTel and SpeQtral to explore quantum security solutions for the financial sector.
The cooperation, formalized through a memorandum of understanding (MoU) signed on August 14, 2024, aims to explore the application of quantum key distribution (QKD) in financial services.
QKD is seen as a potential tool to protect cryptographic key exchange from cybersecurity threats posed by quantum computing.
Rapidly advancing quantum computing has raised serious cybersecurity concerns due to its potential to break widely used encryption methods.
Earlier this year, M.A.S. Issued a recommendation Highlighting these risks, the report encouraged financial institutions (FIs) to consider quantum security solutions, including conducting proof-of-concept trials.
Additionally, MAS has introduced a quantum track under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to support related projects.
The MoU builds on these efforts and establishes a framework for MAS and participating banks to test QKD solutions provided by SPTel and SpeQtral.
The cooperation will focus on assessing the feasibility of QKD in financial services, verifying its security features, and enhancing technical capabilities through knowledge exchange.
Vincent Roy, MAS assistant managing director for technology, said:
“As quantum technology advances, it will be crucial for the financial sector to protect itself against potential cybersecurity threats posed by this technology. The proof-of-concept trial will help MAS and financial institutions better understand the potential impact of QKD on their operations and address the challenges early.”
These technical tests can also shape and inform technical and cyber risk management policies to make the financial system quantum-resistant. We are pleased to partner with the industry in this effort and look forward to the learnings and experiences it will bring to the financial sector.”
