Global: MAS Partners with Banks and Tech Firms to Enhance Quantum Security

In February 2024, the Monetary Authority of Singapore (MAS) issued an advisory to financial institutions highlighting the cybersecurity risks posed by quantum technology. The advisory urged institutions to conduct proof-of-concept trials with quantum security solutions. MAS emphasized the need for the financial sector to achieve ‘cryptoagility,’ enabling a smooth transition from vulnerable cryptographic algorithms to post-quantum cryptography without major disruptions to IT systems and infrastructure.

To support this initiative, MAS has committed $100 million in grant funding to advance AI and quantum computing technologies within the financial sector. This funding will also support pilots exploring the use of Post-Quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to protect critical data.

QKD, a secure communication method that ensures cryptographic keys are known only to shared parties, is considered a crucial defense against potential quantum threats.

In the coming months, MAS will collaborate with leading banks—HSBC, UOB, DBS, and OCBC—on experimenting with QKD solutions provided by SPTel and SpeQtral. These partners will conduct a QKD proof-of-concept sandbox focusing on financial sector use cases to assess the viability, effectiveness, and applicability of QKD for quantum-safe communications.

Vincent Loy, Assistant Managing Director (Technology) at MAS, stated, “As quantum technology evolves, it is crucial for the financial sector to protect against potential cybersecurity threats. These proof-of-concept trials will allow MAS and financial institutions to understand QKD’s impact on operations and address challenges early. The insights gained from these trials will help shape technology and cyber risk management policies, ensuring our financial systems are quantum-proofed.”