HSBC is collaborating with tech firm Quantinuum on a series of exploratory projects focused on leveraging quantum computing in the banking sector.
Over the past year, HSBC has intensified its investment in quantum computing, entering into a multi-year agreement with IBM to explore the technology and actively recruiting research scientists to enhance its innovation team.
The partnership with Quantinuum, which claims to be the world’s largest quantum computing company, will initially target cybersecurity applications. While quantum computing holds great promise for the financial services industry, it also introduces new vulnerabilities. A white paper released by the DTCC last year highlighted the potential risks, noting that quantum computing could expose even the most secure systems to hacking threats.
Together, HSBC and Quantinuum will examine the use of quantum computing-hardened cryptographic keys, particularly by integrating them with post-quantum cryptographic algorithms. This initiative will utilize Quantinuum’s Quantum Origin platform, which employs quantum computing to enhance the robustness of cryptographic keys that protect transactions and identification processes. Quantum Origin operates within existing classical cybersecurity frameworks and is noted as the first commercial product capable of generating cryptographic keys that are provably unpredictable, adding an extra layer of security to safeguard HSBC’s critical data.
Additionally, the partnership will explore the applications of quantum machine learning and quantum natural language processing to enhance HSBC’s capabilities, particularly in fraud detection.
Philip Intallura, global head of quantum technologies at HSBC, remarked, “Our collaboration allows us to access cutting-edge quantum hardware and elevate our use cases to a transformational level. We look forward to the outcomes of our joint efforts, which will deliver long-term value to the bank.”