The Monetary Authority of Singapore (MAS) has joined forces with DBS, HSBC, OCBC, UOB, SPTel, and SpeQtral to explore quantum security solutions for the financial sector.
The collaboration, formalised through a Memorandum of Understanding (MoU) signed on 14 August 2024, aims to study the application of Quantum Key Distribution (QKD) in financial services.
QKD is seen as a potential tool to protect cryptographic key exchanges from cybersecurity threats posed by quantum computing.
Quantum computing, which has advanced rapidly, presents significant cybersecurity concerns due to its potential to break widely used cryptography methods.
Earlier this year, MAS issued an advisory highlighting these risks and recommended financial institutions (FIs) explore quantum security solutions, including conducting proof-of-concept trials.
Additionally, MAS 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, establishing a framework for MAS and participating banks to test QKD solutions provided by SPTel and SpeQtral.
The collaboration will focus on evaluating QKD’s viability in financial services, verifying its security features, and enhancing technical competencies through knowledge exchange.
Vincent Loy, Assistant Managing Director (Technology), MAS, 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.”
