The Monetary Authority of Singapore (MAS) has formed a consortium of banks and technology partners to explore the use of Quantum Key Distribution (QKD) as a protective measure against the threats posed by advanced computing capabilities.
In February 2024, MAS issued an advisory to financial institutions highlighting the cybersecurity risks associated with quantum technology. The advisory encouraged these institutions to conduct proof-of-concept trials with quantum security solutions. MAS emphasizes the need for the industry to achieve ‘cryptoagility’ to transition from vulnerable cryptographic algorithms to post-quantum cryptography without significantly disrupting their IT systems and infrastructure.
Additionally, MAS has committed to providing $100 million in grant funding to support the development of AI and quantum computing technologies within the financial sector. This funding will also facilitate pilot projects that investigate the use of Post-Quantum Cryptography and Quantum Key Distribution to protect critical data.
QKD is a secure communication method for exchanging cryptographic keys known only to the involved parties, and it is viewed as a crucial protective layer against potential quantum breakthroughs.
In the upcoming months, MAS and participating banks—HSBC, UOB, DBS, and OCBC—will collaborate on QKD solutions offered by SPTel and SpeQtral.
The project partners will engage in a QKD proof-of-concept sandbox that will assess its viability, effectiveness, and applicability to financial services. This initiative aims to determine the feasibility of implementing QKD for quantum-safe communications in the financial sector.
Vincent Loy, Assistant Managing Director (Technology) at MAS, stated: “As quantum technology advances, it is essential for the financial sector to protect against potential cybersecurity threats it may pose. These proof-of-concept trials will provide insights into QKD’s potential impact on operations and help address challenges early on. The outcomes of these technology trials will also inform and shape technology and cyber risk management policies aimed at quantum-proofing our financial systems.”