HSBC, a leading global bank, recently announced a groundbreaking development in the world of digital assets. The bank claims to have successfully trialed the first application of quantum-secure technology for buying and selling tokenized physical gold.
This achievement comes one year after HSBC began tokenizing gold bullions using distributed ledger technology (DLT). On September 19, the bank revealed that it had tested quantum-secure methods to safeguard these assets against potential future quantum computing attacks.
To conduct this trial, HSBC collaborated with Quantinuum, a UK-US joint venture quantum technology provider. Quantinuum provided its quantum randomness technology, Quantum Origin, for the trial. The bank also tested the interoperability of its gold tokens using Quantinuum’s post-quantum cryptography (PQC) algorithms to securely move digital assets across distributed ledgers via secure networks.
One of the key outcomes of the trial was the ability to convert HSBC gold tokens into ERC-20 fungible tokens, enhancing distribution and interoperability with other DLTs and digital wallets. The suite of algorithms used in the trial is currently undergoing standardization by the US National Institute of Standards and Technology (NIST) and is designed to withstand future quantum computing attacks.
In addition to this technological advancement, HSBC had previously launched its Gold Token for retail investors in Hong Kong earlier in 2024. This initiative allowed investors to acquire fractional ownership of physical gold.
Philip Intallura, Global Head of Quantum Technologies at HSBC, expressed his satisfaction with the pilot trial, stating, “This pilot successfully demonstrated the viability of deploying these advanced technologies for a real-world business environment.” However, he did not disclose when the quantum-safe methods used during the trial would be implemented to protect real Gold Token assets.
This latest development underscores HSBC’s commitment to innovation and security in the digital asset space. As quantum computing continues to advance, it is essential for financial institutions like HSBC to stay ahead of the curve and adopt quantum-secure technologies to protect their assets and transactions.
For more insights into HSBC’s quantum security strategies and the future of banking systems, you can read our exclusive interview with Philip Intallura. Stay tuned for further updates on HSBC’s quantum-secure initiatives as they continue to lead the way in digital asset protection.
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