The Monetary Authority of Singapore (MAS) has concluded a proof-of-concept sandbox alongside DBS, HSBC, OCBC, UOB, SPTel and SpeQtral to evaluate the use of quantum key distribution (QKD) for secure communications in financial services.
The initiative followed a Memorandum of Understanding signed in August 2024 to explore the feasibility of quantum-safe technologies in financial services. It also built on MAS’ earlier Post-Quantum Cryptography (PQC) experiment with Banque de France, claims Finextra.
The sandbox gave MAS and its partner banks the opportunity to trial QKD solutions in a controlled environment, helping institutions to assess both the potential and the limitations of the technology. The project also offered important guidance on how quantum-safe strategies could be implemented to protect the financial sector against future cyber risks arising from quantum computing.
As part of the experiment, SPTel and SpeQtral jointly deployed a QKD solution to securely transfer sensitive data. A technical report published today detailed the outcomes of the exercise. One of the core findings was that QKD can be used to strengthen the security of communication networks, including connections between data centres and financial institution premises.
The report also stressed the need for the telecommunications sector and QKD providers to improve security standards. Establishing tamper-resistant, auditable trusted nodes with multi-layer protections will be critical to ensuring confidence in QKD.
Another significant challenge identified was interoperability. The report stated that QKD solutions from different providers must be able to integrate seamlessly into the diverse IT environments used by financial institutions to ensure broader adoption.
The exercise also underlined the importance of strong management support. The report called for banks to invest in internal expertise and allocate sufficient resources for quantum-safe projects if they are to move from proof-of-concept to large-scale deployment.
MAS assistant managing director (technology) and chief technology officer Vincent Loy said, “MAS is committed to collaborating with the financial industry to trial promising cybersecurity technologies that can help to safeguard critical financial systems and data against emerging quantum threats. The QKD sandbox marks a significant step in exploring the potential use of quantum-safe solutions within IT systems and networks within the financial sector. The insights gained have enhanced our understanding of QKD technology, helped explore possible ways to strengthen the cyber resilience of Singapore’s financial sector, and uplifted the capabilities of financial institutions to respond to potential cybersecurity threats posed by quantum computing.”
Keep up with all the latest RegTech news here
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
