The Monetary Authority of Singapore (MAS) and industry partners have published a technical report detailing the results of a proof-of-concept (PoC) sandbox testing quantum-safe communications for the financial sector.
In the PoC, MAS, DBS, HSBC, OCBC and UOB deployed a Quantum Key Distribution (QKD) solution jointly provided by SPTel and SpeQtral to demonstrate secure data transfer. The project follows a 2024 Memorandum of Understanding among the parties and builds on MAS’s post-quantum cryptography experiment with the Banque de France from last year.
According to the technical report, the PoC showed QKD’s potential to strengthen communication links, such as those between banks’ data centres and branch offices.
However, it also highlighted challenges. For instance, QKD providers and telecom operators must improve security assurance, including standards for tamper-resistant, auditable trusted nodes with multi-layer safeguards. Moreover, broader adoption will depend on interoperability between different QKD systems and seamless integration with banks’ IT environments.
The report further stresses the need for senior management support, dedicated budgets and in-house expertise if financial institutions are to advance quantum-safe strategies.
“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 insights gained [from the sandbox] 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,” says Vincent Loy, MAS’s assistant managing director (Technology) and chief technology officer.
