HSBC introduces quantum protection for AI-enabled FX trading

In its first trial, HSBC equipped its HSBC AI Markets trading terminal with quantum protection by leveraging Quantum Key Distribution to safeguard a EUR 30 million trading scenario from EUR to USD. With plans to advance this technology into a commercially accessible and globally scalable solution, the bank focuses on safeguarding trades of any value from quantum attacks and protecting highly sensitive trading data against cyber threats.

According to HSBC’s officials, by investing and experimenting in quantum technologies, the bank prepares for the future, while also establishing its input. Representatives stated that introducing quantum protection for HSBC’s FX trading represents an advancement in the blueprint of its cybersecurity, with the bank being committed to protecting customers' assets. The trial was enabled by BT, Toshiba, and AWS technology and solidified HSBC’s dedication to ensuring protection for its customers and clients’ assets in the quantum era.

Electronic trading improved financial transactions by offering traders and investors speed, efficiency, and access to global markets. As per the information detailed in the press release, HSBC processed 4.5 billion payments for its customers in 2022, with an estimated value of GBP 3.5 trillion. Considering the expanding threat of cyberattacks and the development of quantum computers, the financial sector faces a substantial threat. The bank expressed its commitment to proactively researching and developing in this area to ensure the constant resilience of its financial systems against a quantum-prone future. HSBC’s work also supports the UK Government’s ambition to enable the commercial viability of quantum communications as highlighted in the latest National Quantum Strategy.

Furthermore, the bank’s officials also indicated that currency dynamics are rapidly evolving in the foreign exchange trading sector. HSBC’s quantum experiment marks an advancement in finance, as the bank leveraged the capabilities of quantum communications to further solidify its secure trading and transactions. Quantum scientists, cyber-crime experts, and trading specialists from HSBC aim to use the insight generated by this trial to information how Quantum Key Distribution can be implemented into trading tools to safeguard them against attacks in the future.

Headquartered in the UK, HSBC serves customers globally from offices located in 62 countries and territories. In recent months, the bank entered multiple partnerships and announced several advancements to progress its development strategy. At the beginning of November 2023, HSBC partnered with Metaco to establish a digital assets custody service for institutional clients. The custody service, which was scheduled to go live in 2024, was intended to complement HSBC Orion, the bank’s London-based platform for digital asset issuance. Furthermore, it aimed to integrate with an offering for tokenised physical gold.