MAS Collaborates with Banks and Technology Partners on Quantum Security Trials to Address Quantum Computing Threats

Singapore, 14 Aug 2024 - 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)[1] 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 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 to carry 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 in the following areas:

1. 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.
2. Validate the security properties of QKD, such as detecting eavesdropping attempts and preventing unauthorised access or tampering of 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.
3. Enhance technical competencies through knowledge exchange to equip MoU participants with the skillsets to support the transition towards adopting quantum security solutions when they are commercially available.

Mr 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 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 the industry on this initiative and look forward to the learnings and experience that it will bring to our financial sector.”

For a list of quotes from the industry, please refer to Annex A.

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For media queries, please contact:

Hidayah Rahim

Deputy Director (Communications)

Tel: +65 64225609

Email: hidayah_rahim@mas.gov.sg

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Annex A: Quotes from the industry

• Mr Eugene Huang, Group Chief Information Officer, DBS, said, “While DBS has been familiarising ourselves with quantum computing’s potential to transform financial services, we are keenly aware of the dangers this fast-developing technology can bring. Today’s MoU represents a significant step forward in safeguarding Singapore’s financial sector against looming cybersecurity risks associated with quantum, and underscores DBS’ 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.”
• Ms Tancy Tan, Chief Operating Officer, HSBC Singapore, said, “Singapore is demonstrating once more to be forward thinking in the exploration and testing of cutting-edge technologies, bolstering the nation’s reputation as a secure and stable financial hub. HSBC is pleased to join forces with MAS and other collaborators in the banking and technology sectors to trial QKD in Singapore, a key technology in fortifying the financial industry against emerging cyber-attacks.”
• Mr Praveen Raina, Head of Group Operations & Technology, OCBC, said, “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.”
• Mr Albert Kho, Head of Group Retail and Channels Technology and Operations, UOB, said, “Quantum computing brings exciting opportunities to elevate customer's banking experience, but also introduces new risks to our financial system. UOB is honoured to be an industry partner to MAS in this trial to apply QKD solutions for quantum computing risk mitigation. We are committed to the establishment of best practices for the industry to utilise this technology and build a secure, quantum-safe data exchange network.”
• Mr Lum Chune Yang, Co-Founder and Chief Executive Officer, SpeQtral, said, “MAS’ initiatives on galvanising awareness and action within the financial services sector in preparation for the quantum-safe transition underscores the growing importance of this topic within the digital infrastructure spaces. SpeQtral is excited to embark on this industry collaboration as a technology partner, leveraging our expertise in QKD networks and solutions architecting. We hope to support efforts in amplifying knowledge in quantum security within the financial services community."
• Mr Titus Yong, Chief Executive Officer, SPTel, said, “SPTel is honoured to be the technology partner to MAS and leading regional banks to trial Singapore’s inaugural large-scale quantum-safe network for the financial services industry. This collaboration further highlights our strength in delivering quantum safe solutions on a diverse and resilient network. We look forward to working with MAS and the financial services industry to advance and set new standards in quantum security.”
  

[1] QKD is a secure communication method for exchanging cryptographic keys only known between shared parties.