HSBC claims to have successfully trialed the first application of quantum-secure technology for buying and selling tokenized physical gold.
One year after the bank started tokenizing gold bullions using distributed ledger technology (DLT), HSBC announced on September 19 that it successfully tested quantum-secure methods to protect these assets against potential future quantum computing attacks.
For this trial, HSBC partnered with Quantinuum, a UK-US joint venture quantum technology provider, which provided its quantum randomness technology, Quantum Origin.
During the trial, the bank also tested the interoperability of its gold tokens using Quantinuum’s post-quantum cryptography (PQC) algorithms to move digital assets safely across distributed ledgers via secure networks.
This included the capability to convert HSBC gold tokens into ERC-20 fungible tokens, thereby enhancing distribution and interoperability with other DLTs and digital wallets.
The suite of algorithms used in this trial is in the process of being standardized by the US National Institute of Standards and Technology (NIST) and is designed to be secure against future quantum computing attacks.
Earlier in 2024, HSBC launched its Gold Token for retail investors in Hong Kong, allowing them to acquire fractional ownership of physical gold.
Read more: Why Banks Should be Taking Quantum Security Very Seriously
Philip Intallura, Global Head of Quantum Technologies at HSBC, said: “This pilot successfully demonstrated the viability of deploying these advanced technologies for a real-world business environment.”
He did not reveal when the quantum-safe methods used to protect tokenized gold assets during the test will be effectively deployed to protect real Gold Token assets.
Read our interview with Philip Intallura: ‘Q-Day’ Countdown – HSBC Unveils Strategies to Secure Banking Systems
Photo credit: Rokas Tenys/Shutterstock