The Monetary Authority of Singapore (MAS) has signed a Memorandum of Understanding (MoU) with banks and tech companies in the country to collaboratively work on quantum security for financial services. The companies involved include DBS, HSBC, OCBC, UOB, SPTel and SpeQtral.
Quantum computing harnesses the laws of quantum mechanics to process information in a fundamentally new way, enabling us to solve complex real-world problems. Yet, it could potentially be used to break commonly used cryptography and encryption algorithms too.
To address this concern, the MoU will provide a collaborative framework for trialling the application of quantum security solutions in financial services. In the coming months, MAS and participating banks will experiment with Quantum Key Distribution (QKD) solutions jointly provided by SPTel and SpeQtral.
They will conduct QKD proof-of-concept sandbox on financial sector use cases to evaluate its viability, effectiveness and applicability to financial services, and determine the feasibility of using QKD for quantum-safe communications within the financial sector.
They will also validate the security properties of QKD, such as detecting eavesdropping attempts and preventing unauthorised access or tampering with QKD transmissions. This will help to verify QKD’s capability to provide robust security for sensitive data transfers, and enhance trust in its deployment within the sector.
Beyond technology, MoU participants will be equipped with the skillsets to support the transition towards adopting quantum security solutions when they are commercially available.
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“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. 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 with the industry on this initiative and look forward to the learnings and experience that it will bring to our financial sector,” says Vincent Loy, MAS’s assistant managing director (Technology).
Commenting on the collaboration, Eugene Huang, group chief information officer at DBS, says: “Today’s MoU represents a significant step forward in safeguarding Singapore’s financial sector against looming cybersecurity risks associated with quantum, and underscores DBS’s own commitment to leveraging innovation to ensure that banking services remain safe, secure, and resilient. In particular, by participating in the development of QKD use cases, we are not only enhancing our defences but also setting new standards for futureproofing our financial systems against bad actors seeking to exploit encryption technology.”
Praveen Raina, head of Group Operations & Technology at OCBC, adds: “Quantum technology holds immense potential and relevance for the financial sector especially in mitigating cybersecurity risks. Recognising this, on top of partnering with the wider industry, we are taking proactive steps to invest in talent and infrastructure capabilities in this area. This quantum security collaboration continues to build on our culture of innovation at OCBC and contributes to Singapore’s ambition to establish itself as a quantum powerhouse.”
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This MoU builds on MAS’s quantum security initiatives earlier this year. In February 2024, MAS issued an advisory to all financial institutions on the cybersecurity risks associated with quantum technology. It also provided recommendations for financial institutions to safeguard themselves against the identified threats, including carrying out proof-of-concept trials with quantum security solutions.
Additionally, MAS has launched a quantum track under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to provide funding support for quantum projects and capabilities.
