A Memorandum of Understanding (MoU) was signed by the Monetary Authority of Singapore (MAS), DBS, HSBC, OCBC, UOB, SPTel, and SpeQtral to begin working together on quantum security and investigate the use of quantum key distribution (QKD) in the financial services industry.
In response to the cybersecurity risks posed by quantum computing, financial institutions (FIs) can safeguard the exchange of cryptographic keys with the assistance of QKD, according to a statement released by MAS.
It has been observed that the field of quantum computing technology is evolving quickly and has the ability to crack popular encryption and cryptography schemes. This raises serious concerns about cybersecurity.
A cybersecurity advise on the hazards associated with quantum technology was sent to all financial institutions (FIs) by MAS in February 2024. The advisory included suggestions on how FIs may protect themselves from the threats that were discovered, such as conducting proof-of-concept trials using quantum security solutions.
In an effort to assist quantum initiatives and capabilities financially, MAS more recently introduced a quantum track under the Financial Sector Technology and Innovation Grant Scheme.
Building on previous efforts, this Memorandum of understanding offers a cooperative framework for testing the implementation of quantum security solutions in the financial services industry.
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In the upcoming months, SPTel and SpeQtral will collaborate to test QKD solutions for MAS and participating banks. The tests will focus on three main areas: confirming QKD’s security features, assessing QKD’s feasibility in the financial services industry, and improving technical skills via knowledge sharing.
To assess QKD’s viability, effectiveness, and applicability to financial services, as well as the feasibility of utilizing it for quantum-safe communications within the financial sector, the parties will perform a proof-of-concept sandbox on use cases related to the financial sector.
“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,” said Vincent Loy, Assistant Managing Director (Technology) of MAS. 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,” he added.
Additionally, they will confirm that QKD has the security features that guard against illegal access and manipulation with QKD transmissions, including the ability to identify eavesdropping attempts.
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This will increase confidence in QKD’s implementation in the industry and confirm its capacity to offer strong security for critical data transfers.
Additionally, through information exchange, they will improve technical competencies to give MoU participants the tools they need to enable the adoption of quantum security solutions whenever they become commercially accessible.
About MAS
MAS leads Singapore’s fast-growing financial industry with new policies and initiatives. Work at MAS offers intellectual challenges and the satisfaction of establishing one of Asia’s top financial hubs.
About DBS
DBS, a significant Asian financial services business, operates in 19 markets. DBS is listed in Singapore and operates throughout Greater China, Southeast Asia, and South Asia.
About OCBC
OCBC, the oldest Singapore bank, was founded in 1932 by merging three local banks, the oldest of which was founded in 1912. It is Southeast Asia’s second largest financial services group by assets and one of the world’s highest-rated banks.
About SPTel
SPTel helps customers succeed by combining the agility and flexibility of a growing company with the parents’ strength, reliability, and integrity. SPTel helps organizations accelerate their digital journey with high-value products and innovative services.
