HSBC has become the first bank to pioneer quantum protection for AI-powered FX by using quantum cryptography to safeguard trading data against quantum cyber-threats. 

The experiment utilised particles of light and the properties of quantum physics to deliver secret keys to encrypt and decrypt data, which it says is immune to even quantum computers. 

HSBC will utilise insights gained from this experiment to integrate Quantum Key Distribution (QKD) into trading tools in a bid to build resilience against future quantum attacks.

The bank integrated the quantum protection into its HSBC AI markets trading terminal. In the trial, it used QKD to secure a €30 million trading scenario from Euros to US dollars. The feat was done in partnership with technology leaders such as BT, Toshiba, and Amazon Web Services (AWS).

“Today’s trials will define tomorrow’s triumphs. Successfully pioneering quantum protection for our FX trading is a significant step with far-reaching implications for the blueprint of our future cybersecurity,” said Colin Bell, CEO of HSBC Bank Plc and HSBC Europe.

“The quantum revolution is not on the horizon; it’s already here. By investing and experimenting in quantum technologies now, HSBC is not just preparing for the future; we’re shaping it.”

HSBC processed 4.5 billion payments, worth a combined £3.5 trillion for customers last year alone, and has long had the increasing pressure quantum computers have put on the security of the financial sector on its radar. 

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“Ensuring the security of our client’s data is paramount, and we must constantly innovate and stay ahead of the curve,” said Richard Bibbey, HSBC global head of FX and emerging markets rates and commodities.

“This ground-breaking quantum experiment marks a considerable leap in the world of finance. For the first time, we have leveraged the power of quantum communications to further reinforce our secure trading and transactions.”

Although viable quantum computers are still a number of years away from practical use, lawmakers and industry bodies have been diligently preparing for the upcoming threat. 

This initiative aligns with the UK Government’s ambition to enable the commercial viability of quantum communications, as outlined in the National Quantum Strategy.