MAS to commence quantum-proofing cybersecurity trials with banks “in the coming months”
The Monetary Authority of Singapore (MAS) has joined hands with a legion of banks to assess the potential threat posed by the application of quantum computing within financial services.
MAS joins banks for quantum cybersecurity trials
Included in the memorandum of understanding are DBS Bank, HSBC, the Oversea-Chinese Banking Corporation (OCBC), United Overseas Bank (UOB), Singapore-based telecommunications provider SPTel and SpeQtral, which specialises in quantum communication technologies.
Together, the group will examine the application of quantum key distribution (QKD), a particular communication method used for exchanging cryptographic keys between two separate parties, typically in instances of interbank communications, sensitive data transfers and high-security financial transactions.
MAS claims this approach can help to protect the exchange of cryptographic keys with a keen emphasis on the cybersecurity threats posed by the ascent of quantum computing technology.
The technology, it states, has “demonstrated potential to break commonly used cryptography and encryption algorithms”, a development it describes as “a major cybersecurity concern”.
Building quantum resilience
To counter this potential, the group will experiment with QKD solutions – provided by SPTel and SpeQtral – across three specific areas, with testing set to start “in the coming months”.
These will include the creation of a proof-of-concept sandbox to evaluate the “viability, effectiveness and applicability” of QKD to financial services and determine the “feasibility of using QKD for quantum-safe communications within the financial sector”.
This is in addition to validating the security properties of QKD, a process which is to include “detecting eavesdropping attempts and preventing unauthorised access or tampering of QKD transmissions”.
Also on the agenda are enhancements to the “technical competencies through knowledge exchange”, which MAS hopes will equip project participants with “the skillsets to support the transition towards adopting quantum security solutions when they are commercially available”.
In comments, Vincent Loy, assistant managing director of technology at MAS, describes safeguarding against potential cybersecurity threats from quantum technology as “vital for the financial sector”.
“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.”
