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The Monetary Authority of Singapore (MAS) has announced a significant step in enhancing financial sector security through a new collaborative initiative. MAS signed a Memorandum of Understanding (MoU) to advance quantum security research and explore the application of Quantum Key Distribution (QKD) within financial services.
Quantum Key Distribution (QKD) is a cutting-edge technology designed to safeguard the exchange of cryptographic keys, thereby addressing the cybersecurity risks associated with the rapidly advancing field of quantum computing. As quantum computing technology evolves, it threatens to undermine traditional encryption and cryptographic methods, posing a serious risk to cybersecurity.
In response to these emerging threats, MAS issued an advisory in February 2024, highlighting the potential cybersecurity risks posed by quantum technology. The advisory recommended that financial institutions (FIs) undertake proof-of-concept trials to assess quantum security solutions.
To support these efforts, MAS recently launched a quantum track under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0), offering funding to support quantum projects and capabilities.
OpenGov Asia reported the MAS committed an additional SG$ 100 million under the FSTI 3.0 to advance quantum and artificial intelligence technologies in the financial sector. This funding aims to accelerate the adoption of these technologies by providing grants for quantum computing and security innovation, AI development, and industry-wide AI solutions.
The initiative includes support for quantum key distribution and post-quantum cryptography to enhance cybersecurity. MAS will also collaborate with educational institutions to develop talent and ensure Singapore’s leadership in financial technology.
The MoU signed today builds on these earlier initiatives, establishing a collaborative framework for trialling quantum security solutions in the financial sector. Over the coming months, MAS and participating banks will work together to test QKD solutions, which will be jointly provided by SPTel and SpeQtral. The key areas of focus for this collaboration include:
Proof-of-Concept Trials: Conducting sandbox trials to assess the viability and effectiveness of QKD for financial sector applications. This will help determine whether QKD can be used for quantum-safe communications within the industry.
Validation of Security Properties: Testing QKD’s ability to detect eavesdropping and prevent unauthorised access or tampering of transmissions. This will verify QKD’s capacity to secure sensitive data transfers and build trust in its deployment.
Enhancement of Technical Competencies: Facilitating knowledge exchange to equip participants with the necessary skills to support the transition to quantum security solutions once they become commercially available.
Mr. Vincent Loy, Assistant Managing Director (Technology) at MAS, emphasised the importance of this initiative. “As quantum technology advances, it is vital for the financial sector to safeguard against potential cybersecurity threats that may arise. The proof-of-concept trials will provide valuable insights into QKD’s impact on operations and help address challenges early. These trials will also guide technology and cyber risk management policies, contributing to the quantum-proofing of our financial systems. We are excited to partner with the industry on this initiative and look forward to the insights and experiences it will bring to our financial sector.”
Singapore is eager to deploy quantum technology and innovation to enhance security across various sectors. The country is investing in cutting-edge solutions to safeguard its digital infrastructure and address emerging cybersecurity threats.
Nanyang Technological University Singapore launched the Quantum Sovereignty and Resilience (QUASAR) programme, focusing on quantum cybersecurity, with support from a leading German non-profit.
Developed with the Technical University of Munich (TUM), this programme tackles quantum technology cybersecurity challenges through research on quantum cryptanalysis, post-quantum encryption, quantum-safe hardware, and system integration.
By boosting Quantum and AI support, MAS aims to keep Singapore’s financial sector at the forefront of innovation and competitiveness. This initiative will enable the sector to fully harness the capabilities of advanced technologies.
