HSBC has conducted the world’s first trial of a tool designed to protect sensitive financial data from cyber criminals using quantum computers. The British bank used the tool to safeguard a trade on its HSBC AI Markets platform, exchanging 30 million euros for US dollars. The test demonstrates how banks are preparing for potential cyber attacks as advances in computing increase the risk of accessing trading data in global financial systems. While the technology is not yet capable of breaking traditional encryption, HSBC believes it is necessary to be prepared. The test was conducted on a network provided by BT and using devices developed by Toshiba and support from Amazon Web Services. HSBC plans to use a form of encryption called quantum key distribution (QKD) in its trading systems to enhance security. QKD uses light particles to transfer secret keys between parties, which can be used to encrypt and decrypt sensitive data. Quantum computers are expected to be much faster than current supercomputers and have the potential to revolutionize various industries. Banks worldwide are exploring how to leverage this technology while also protecting against potential risks. However, some experts question the practical implications of QKD technology for financial markets, as its specialized hardware requirements may limit widespread adoption.
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