MAS teams up with Banks and Tech partners to offer Quantum Security

By Gloria Mathias

The Monetary Authority of Singapore (MAS), DBS, HSBC, OCBC, UOB, SPTel and SpeQtral today signed a Memorandum of Understanding (MoU) to embark on quantum security collaboration and study the application of Quantum Key Distribution (QKD) in financial services.

QKD can help financial institutions (FIs) protect the exchange of cryptographic keys to address the cybersecurity threats posed by quantum computing.

Quantum computing technology has been developing rapidly and has demonstrated the potential to break commonly used cryptography and encryption algorithms. This poses a major cybersecurity concern.

In February 2024, MAS issued an advisory to all FIs on the cybersecurity risks associated with quantum technology and provided recommendations for FIs to safeguard themselves against the identified threats, including carrying out proof-of-concept trials with quantum security solutions. More recently, MAS 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.

This MoU builds on these initiatives and provides 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 QKD solutions jointly provided by SPTel and SpeQtral.

Vincent Loy, Assistant Managing Director (Technology), MAS, said, “As quantum technology advances, it is vital for the financial sector to safeguard against potential cybersecurity threats that the technology may bring about. 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 learning and experience that it will bring to our financial sector.”