HSBC the London-based eighth largest bank in the world, has formed a partnership with Amazon Web Services, British Telecom (BT), and Toshiba to conduct trials and experiments using quantum encryption technology. The bank will be the first to test a new quantum "metro" network, which utilizes unbreakable encryption technology for secure transactions through quantum cryptography. Developed by Toshiba in collaboration with BT, the quantum metro network enables unconditional and secure transactions between institutions. HSBC will explore various use cases on the network, including financial transactions, video calling, and edge computing.
One of the key applications being tested by HSBC is "quantum key distribution" (QKD), which enables secure messaging between two parties separated by distance. QKD generates a one-time encryption key simultaneously for both parties. Due to quantum phenomenon, such as Quantum states collapsing when measured, quantum data is considered impenetrable, making it highly secure. Any attempt by an external party to view, intercept, or modify a transaction will be immediately detected by both parties using QKD.
However, there are technical limitations to the transmission range of QKD. Unlike classical data used by conventional computers, photons carrying quantum data cannot be strengthened over long distances due to the noise inherent in quantum information. This results in exponential data loss as the fiber optic network lengths. Although higher-intensity photons can potentially overcome these limitations, scientists are still in the early stages of developing solutions. Chinese researchers recently achieved a milestone by successfully sending QKD over 1,000 kilometers of fiber optic cable, setting a new world record.
In the case of HSBC's trial on the BT-Toshiba Metro network, the tests will cover a shorter distance of 62 kilometers in England, connecting HSBC's global headquarters in Canary Wharf with data centers in Berkshire. The quantum metro network aims to provide secure and uncontroversialditional transactions, ensuring the integrity of financial operations and other applications.
