HSBC Turns to Quantum Essential Distribution for Enhanced Data Security, Explores New Cyber Defense Strategies

Author: Anusuya Lahiri | July 05, 2023 06:51am

HSBC Holdings, Plc (NYSE:HSBC) looks to test an advanced data-security system run by U.K. telecom giant BT Group Plc (OTC:BTGOF), Amazon.com Inc’s (NASDAQ:AMZN) AWS cloud and Japan’s Toshiba Corp (OTC:TOSBF) (OTC:TOSYY).

The quantum essential distribution type of cyber defense could mark an important part of the defense strategy for companies like HSBC, helping help protect trillions of dollars of transactions from increasingly sophisticated hackers, Bloomberg reports.

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“As technology develops and current methods begin to be defeated, we have to make sure we have the most up-to-date robust encryption and security standards,” HSBC CEO for Europe Colin Bell said in an interview.

Participating in the trial involves the bank installing equipment to send test data 62 kilometers (38.5 miles) between its headquarters in London’s Canary Wharf financial district and a data center in the neighboring county Berkshire. 

HSBC said the trial would help it better analyze threats and determine how to protect data.

Quantum key distribution allows two remote parties to agree on a shared secret key to encrypt and decrypt data. 

In 2022, JP Morgan Chase & Co (NYSE:JPM) acknowledged demonstrating the ability of the newly developed QKD network to instantly detect and defend against eavesdroppers as part of a system also involving Toshiba.

Price Action: HSBC shares traded lower by 0.75% at $39.65 premarket on the last check Wednesday.

Posted In: AMZN BTGOF HSBC JPM TOSBF TOSYY