HSBC London successfully tests a hackproof quantum network to secure trades

By Matthew Griffin Computing 31st July 2023

WHY THIS MATTERS IN BRIEF

Quantum networks are allegedly the ultimate in network security, and London is ahead of the curve in adopting them.

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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.

The Future of Communities | Castleton, Milton Keynes | Matthew Griffin | Futurist Keynote Speaker

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.”

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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.

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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.

Matthew Griffin / About Author

Described by NASA as a "Walking Encyclopaedia of the Future" and one of the world’s most in demand keynote speakers Matthew Griffin, Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm, is a multi-award winning Futurist and strategic foresight expert, author, lecturer, mentor, podcast and YouTube host.

With a distinguished career running global business units at Atos, EMC, and IBM today Matthew helps leaders and titans of industry from all over the world explore the impact of the inter sections of technology, culture, and leadership, then helps them create high performance organisations that can continuously disrupt, outpace, and outthink their competition.

15 times author of the hit series the Codex of the Future series Matthew's ability to identify, track, and explain the impacts of hundreds of emerging technologies and trends on global business, culture, and society has earned him a powerful reputation and a roster of clients that include royal households, world leaders across the G7, G20, and G77, and many of the world's most recognised and exceptional organisations including ABB, Accenture, ABN Amro, Adidas, AON, ARM, BCG, Centrica, Citi Group, Coca Cola, Deloitte, Dentons, Disney, Dow, EY, Google, KPMG, Lego, Microsoft, Legal & General, LinkedIn, Nokia, Paramount, PepsiCo, PWC, Qualcomm, RWE, Samsung, T-Mobile, UBS, Visa, WIRED, WPP and hundreds of others.

Matthew is regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, and his mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.