HSBC Deploys Quantum-Secure Technology to Protect Tokenised Gold from Future Cyber Threats

HSBC Deploys Quantum-Secure Technology to Protect Tokenised Gold from Future Cyber Threats

(IN BRIEF) HSBC has successfully piloted quantum-secure technology to protect tokenised physical gold from future cyber threats posed by quantum computing. The bank partnered with Quantinuum to use post-quantum cryptography (PQC) and Quantum Origin technology, safeguarding HSBC’s gold tokens against potential “store now, decrypt later” cyber-attacks. This move builds on HSBC’s prior innovations in tokenised gold offerings for both institutional and retail investors. The pilot demonstrated secure movement of gold tokens across distributed ledger systems, enhancing their distribution and interoperability with other digital wallets and platforms.

(PRESS RELEASE) LONDON, 19-Sep-2024 — /EuropaWire/ — HSBC has successfully completed a pilot project using quantum-secure technology for trading tokenised physical gold, marking a significant step toward safeguarding digital assets against potential quantum computing threats. The bank continues to lead innovation in this space, having already introduced tokenised physical gold to institutional investors last year via its HSBC Orion digital assets platform. This year, HSBC expanded its offering with the launch of HSBC Gold Token for retail investors in Hong Kong, allowing them to own fractional shares of physical gold.

In this latest development, HSBC tested post-quantum cryptography (PQC) to ensure the security of its gold tokens as they move across distributed ledger technologies (DLT) via secure networks. The trial also demonstrated the capability to convert HSBC’s gold tokens into ERC-20 fungible tokens, improving the ability to distribute assets and enhance interoperability with other DLTs and digital wallets.

As part of the quantum technology pilot, HSBC partnered with Quantinuum, a leading quantum computing company. Using Quantinuum’s Quantum Origin technology and advanced PQC algorithms, the collaboration successfully protected digital assets such as HSBC’s gold tokens from future quantum threats, including the risk of “store now, decrypt later” (SNDL) attacks. SNDL is a cyber threat where attackers steal encrypted data now, with the intention of decrypting it later using quantum computing.

Philip Intallura, HSBC’s Global Head of Quantum Technologies, emphasized the bank’s leadership in this field, stating, “HSBC was the first global bank to offer tokenised physical gold, and now we are further enhancing this innovation with advanced quantum-secure technology. This successful pilot demonstrates the real-world viability of these cutting-edge solutions.”

Quantinuum’s Chief Product Officer, Ilyas Khan, highlighted the significance of this partnership, noting, “Together, HSBC and Quantinuum are pioneering the next generation of financial services by incorporating quantum-hardened defences to protect sensitive data from the evolving risks posed by quantum computing.”

About HSBC
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the world’s largest banking and financial services organisations.

About Quantinuum
Quantinuum, the world’s largest integrated quantum company, pioneers powerful quantum computers and advanced software solutions. Quantinuum’s technology drives breakthroughs in materials discovery, cybersecurity, and next-gen quantum AI. With almost 500 employees, including 370+ scientists and engineers, Quantinuum leads the quantum computing revolution across continents.

1The suite of algorithms used are in the process of being standardised by the National Institute of Standards and Technology (NIST) and are designed to be secure against future quantum computing attacks.

Media Contact:

Press Office
+44 (0)20 7991 8096
pressoffice@hsbc.com

SOURCE: HSBC