Monetary Authority Of Singapore And Industry Partners Publish Technical Report On Proof-Of-Concept Sandbox For Quantum-Safe Communications Within The Financial Sector

The Monetary Authority of Singapore (MAS), in collaboration with DBS, HSBC, OCBC, UOB, SPTel and SpeQtral[1], has successfully completed a proof-of-concept (PoC) sandbox to evaluate the use of Quantum Key Distribution (QKD)[2] for secure communications in the financial sector. This follows the signing of a Memorandum of Understanding (MoU  ) between the parties in August 2024 to explore the technical viability, effectiveness and applicability of quantum-safe technologies in financial services, as well as the Post-Quantum Cryptography (PQC  ) experiment with Banque de France last year.

Bolstering cyber resilience and securing financial services against quantum threats

2 The QKD sandbox enabled MAS and the participating banks (DBS, HSBC, OCBC, and UOB) to collaborate and deepen our understanding of quantum security technologies, such as QKD. The sandbox also provided insights into the benefits and limitations of QKD solutions, that will guide MAS and the participating banks in making informed decisions on quantum-safe strategies and bolster the sector’s cyber resilience against quantum threats.

3 Through the sandbox, MAS and the participating banks were able to deploy a QKD solution jointly provided by SPTel and SpeQtral to validate that QKD can be used to securely transfer sensitive data. 

4 A technical report detailing the results and takeaways from the sandbox was published today. Key findings highlighted in the report include:

a. QKD has the potential to strengthen the security of communication networks. Financial institutions (FIs) can use QKD to secure connections, including between data centres and FI premises.

b. Need for QKD providers and the telecommunications sector to continue strengthening QKD security assurance. This includes establishing comprehensive standards for tamper-resistant, auditable trusted nodes[3] with multi-layer security measures.

c. More work needs to be undertaken to achieve greater interoperability between different QKD providers. For QKD to be widely adopted in the financial sector, it needs to be able to readily interoperate across different QKD providers and seamlessly integrate into FIs’ diverse IT environments. 

5 Beyond the valuable technical takeaways, the sandbox also highlighted the need for strong senior management support to build in-house competency and allocate sufficient budget and resources to work on quantum-safe initiatives. 

6 Mr Vincent Loy, Assistant Managing Director (Technology) and Chief Technology Officer, MAS, said, “MAS is committed to collaborating with the financial industry to trial promising cybersecurity technologies that can help to safeguard critical financial systems and data against emerging quantum threats.  The QKD sandbox marks a significant step in exploring the potential use of quantum-safe solutions within IT systems and networks within the financial sector. The insights gained have enhanced our understanding of QKD technology, helped explore possible ways to strengthen the cyber resilience of Singapore’s financial sector, and uplifted the capabilities of financial institutions to respond to potential cybersecurity threats posed by quantum computing.”

7 For a list of quotes from the industry, please refer to Annex A. 

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[1] SPTel, a digital services and network provider, and SpeQtral, a quantum communications provider, have been jointly appointed by the Infocomm Media Development Authority of Singapore to be a network operator for Singapore’s first nationwide quantum-safe network, the National Quantum-Safe Network Plus (NQSN+).

[2] QKD is a secure communication method for exchanging cryptographic keys only known between shared parties.

[3] In QKD, a trusted node is a physically secure intermediary site that facilitates connections across longer distances and multiple sites.