HSBC London successfully tests a hackproof quantum network to secure trades
Quantum networks are allegedly the ultimate in network security, and London is ahead of the curve in adopting them.
Key takeaways
- While it won’t be a standalone cybersecurity method, it may be an important part of the defense strategy for companies like HSBC as the technology develops.
- HSBC said the trial will help it better analyze threats and work out how to protect data.
- QKD is a way two remote parties can agree a shared secret key to encrypt and decrypt data that’s thought, so far, to be unhackable.
Cite or link to this article
Griffin, M. (2023) 'HSBC London successfully tests a hackproof quantum network to secure trades', 311 Institute, 31 July. Available at: https://www.311institute.com/hsbc-london-successfully-tests-a-hackproof-quantum-network-to-secure-trades/ (Accessed: 1 October 2026).
A year or so after starting construction on the world’s first city wide quantum internet network HSBC in London will become the first British bank to test an advanced new data security system that’s been developed by UK telecom giant British Telecom, Amazon, and Toshiba.
So called Quantum Key Distribution (QKD) is a type of cyber defense that financial institutions think could help protect trillions of dollars of transactions from increasingly sophisticated hackers in the future.
While it won’t be a standalone cybersecurity method, it may be an important part of the defense strategy for companies like HSBC as the technology develops. Soon quantum computers could slice through even the most complex mathematical encryption systems so a separate and critical part of preparing for what’s known as “Q-Day” when this happens is finding new encryption methods.
“As technology develops and current methods begin to be defeated, we have to make sure we have the most up-to-date robust encryption and security standards,” HSBC Chief Executive Officer for Europe Colin Bell said in an interview. “Ultimately it becomes a ‘when’ question rather than an ‘if’ question, and hence why we are very pleased to take part in a trial like this.”
Participating in the trial involves the bank installing equipment to send test data 62 kilometers (38.5 miles) between its headquarters in London’s Canary Wharf financial district and a data center in the neighbouring county Berkshire. HSBC said the trial will help it better analyze threats and work out how to protect data.
QKD is a way two remote parties can agree a shared secret key to encrypt and decrypt data that’s thought, so far, to be unhackable. Forms of it have been in development for years and are in large part reliant on the properties of quantum physics.
HSBC isn’t the first bank to consider quantum key distribution as a potential long-term security method though; JPMorgan Chase said last year it had “demonstrated the ability of the newly developed QKD network to instantly detect and defend against eavesdroppers,” as part of a system also involving Toshiba.
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Why does this matter?
Quantum networks are allegedly the ultimate in network security, and London is ahead of the curve in adopting them.
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
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Source: first published by the 311 Institute on 31 July 2023. Cite as: Griffin, M. (2023). HSBC London successfully tests a hackproof quantum network to secure trades. 311 Institute. https://www.311institute.com/hsbc-london-successfully-tests-a-hackproof-quantum-network-to-secure-trades/
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