HSBC trials quantum cyber defence system with BT, Toshiba and AWS

HSBC is set to become the first British bank to test an advanced security system that hopes to ward off future hackers once quantum computing becomes widespread.

The British bank will be using BT and Toshiba’s commercial quantum secure metro network, leveraging Quantum Key Distribution – a cyber defence system that financial institutions claim will help protect transactions from increasingly sophisticated hackers in the future.

HSBC will trial the secure transmission of test data over fibre-optic cables between its global HQ in Canary Wharf and a data centre in Berkshire, 62km away, while integrating it with AWS Cloud Edge.

QKD offers encrypted transmission of data by using particles of light and the fundamental properties of quantum physics to deliver secret keys between parties.

The keys allow for the encryption of sensitive data, offering an extra layer of protection from potential cyber threats.

HSBC processed 4.5 billion payments for its customers last year, worth an estimated value of £3.5 trillion. These electronic payments rely on encryption to protect customers and businesses from cyber attacks.

In the future, experts predict QKD will play a key role in protecting financial transactions, client data and proprietary information across the financial sector.

While QKD won’t be the only cybersecurity method, it may play an important part of the defence strategy for banks as the technology develops.

Experts have warned that later generations of quantum computers could easily break through the prime number- based system that modern encryption methods are based on, and so another part of preparing for what’s become known as Q-day, is finding new encryption methods.

Another measure, announced last month was a partnership with quantum computing firm Quantiniuum to demonstrate the use of quantum computing-hardened cryptographic keys.

In a statement HSBC Bank and Europe CEO Colin Bell assured customers, clients and stakeholders that the bank was already preparing its global operations for a quantum future.

“We are spearheading industry-leading trials, recruiting highly trained experts, and investing in strong, strategic partnerships to explore how we could deploy these technologies as they develop.

“Today’s milestone proves the importance of collaboration and demonstrates the significant innovation and progress that can be achieved when industry leaders join forces.”

Last year, BT announced a partnership with Toshiba to launch the first commercial trial of a quantum-secured network, with EY signed up as an initial trial customer.

BT added that it was critical to ensure its digital infrastructure remains secure against threats leveraging quantum computing.

“This trial enables global industry partners to collaborate on the next era for network security,” said BT chief security and networks officer Howard Watson.

“We look forward to co-innovating to develop and prove further use cases, demonstrating the power of quantum communications in the UK and worldwide.”