HSBC, a London-based bank ranked eighth globally, is partnering with Amazon Web Services, BT, and Toshiba to conduct a series of trials and experiments involving quantum encryption technology.
HSBC has become the inaugural bank to pledge its participation in trials on the innovative quantum “metro” network. This network employs unbreakable encryption through quantum cryptography to ensure the security of transactions.
The quantum metro network, a collaboration between Toshiba and BT, enables secure transactions between institutions. HSBC will be conducting trials on the network, exploring various use cases such as financial transactions, video calls, and edge computing.
One of the main focuses of HSBC’s experimentation is a technology called “quantum key distribution” (QKD). QKD allows two parties to securely exchange information over long distances by generating unique encryption keys simultaneously. Quantum states collapse when measured, making the transmitted data impervious to unauthorized access.
In the context of QKD, this means that any attempt by an external party to observe, intercept, or manipulate a transaction would be immediately detectable by both parties involved.
Researchers have recently achieved a breakthrough in quantum digital payments by demonstrating “unconditionally secure” systems. However, there are still limitations when it comes to transmitting Quantum Key Distributions (QKDs) over long distances. While classical data can be sent over fiber optic cables with boosted signal strength, quantum data cannot be amplified and suffers from exponential loss due to the noisy nature of quantum information. As a result, the longer the fiber optic network, the less likely quantum data can survive transmission. One potential solution is using higher-intensity photons, but this is still in the early stages of development.
In May 2023, scientists in China set a new world record by successfully sending QKDs across 1,000 kilometers of fiber optic cable. However, for the HSBC trials taking place on the BT-Toshiba metro network, a much shorter distance is required. The tests will be conducted over 62 kilometers of fiber optic cables in England, connecting HSBC’s global headquarters in Canary Wharf to a data center in Berkshire.