MAS Partners With Industry Players on Quantum Security

Quantum computing has the potential to beat contemporary security measures. The Monetary Authority of Singapore is collaborating with major industry players in banking and tech to explore how to withstand such abilities. 

The Monetary Authority of Singapore (MAS) has signed a Memorandum of Understanding (MOU) with top industry players in banking and technology for quantum security collaboration to address threats from quantum computing, according to a statement. The collaborators include DBS, HSBC, OCBC, UOB, SPTel and SpeQtral.

Quantum computing is an emerging field of computer science that leverages the laws of quantum mechanics to solve problems beyond the abilities of classic computing. The field is developing rapidly and has demonstrated the potential to break commonly used cryptography and encryption algorithms in banking security. 

Quantum Key Distribution

The MOU will focus on studying the application of quantum key distribution (QKD). QKD is a secure communication method for exchanging cryptographic keys only known between shared parties.

Through collaboration with the industry, the regulator will look to conduct QKD proof-of-concept sandbox on financial sector use cases; validate the security properties of QKD; and enhance technical competencies through knowledge exchange.

Proof-of-Concept Trials

In February 2024, MAS issued an advisory to all financial institutions on cybersecurity risks associated with quantum technology. It provided recommendations, including carrying out proof-of-concept trials with quantum security solutions. More recently, MAS launched a quantum track an existing grant scheme to provide funding support for quantum projects and capabilities. 

«The proof-of-concept trials will help MAS and financial institutions better understand QKD’s potential impact on operations and address challenges early,» said Vincent Loy, assistant managing director (technology), MAS. «These technology trials can also inform and shape technology and cyber risk management policies towards quantum-proofing our financial systems.»