HSBC has announced a strategic partnership with tech firm Quantinuum to embark on a series of collaborative projects aimed at harnessing the power of quantum computing within the banking sector.
Over the past year, HSBC has been intensifying its focus on quantum computing, forging a multi-year agreement with IBM to delve into the technology and actively recruiting research scientists to establish a dedicated quantum capability within its innovation team.
Now, the bank is expanding its quantum endeavors through a long-term collaboration with Quantinuum, which boasts the distinction of being the world’s largest quantum computing company. The initial phase of this partnership will concentrate on bolstering cybersecurity.
While quantum computing is anticipated to unlock a plethora of possibilities for the financial services industry, it also presents new avenues for illicit activities. In response to this concern, last year the DTCC issued a white paper cautioning that quantum computing could “introduce significant new risks to financial institutions by rendering even the most highly fortified computer systems susceptible to hacking.”
Together, HSBC and Quantinuum will explore the utilization of quantum computing-hardened cryptographic keys, which will be complemented by post-quantum cryptographic algorithms.
The research will leverage Quantinuum’s Quantum Origin platform, which harnesses the computational capabilities of a quantum computer to enhance the strength of cryptographic keys employed in securing transactions and identification processes.
Quantum Origin integrates seamlessly with existing “classical” cybersecurity infrastructure and represents “the first commercially available product that employs a quantum computer to generate genuinely unpredictable cryptographic keys, thereby potentially providing an additional layer of security to safeguard HSBC’s most valuable data,” according to a joint statement.
Additionally, the partnership will investigate the potential advantages of quantum machine learning and quantum natural language processing in enhancing fraud detection capabilities within HSBC’s operations.
Philip Intallura, Global Head of Quantum Technologies at HSBC, expressed enthusiasm about the collaboration, stating, “Our partnership presents a remarkable opportunity to leverage cutting-edge quantum hardware and elevate the impact of our use cases to a truly transformative level. We eagerly await the outcomes of our collaborative efforts and aim to deliver long-term value to the bank.”
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