HSBC Successfully Trials Quantum-Secure Technology for Tokenized Gold Trading
HSBC recently announced the successful trial of the first application of quantum-secure technology for buying and selling tokenized physical gold. This milestone comes one year after the bank began tokenizing gold bullions using distributed ledger technology (DLT).
Quantum-Secure Methods Tested
Partnering with Quantinuum, a UK-US joint venture quantum technology provider, HSBC utilized Quantum Origin, a quantum randomness technology, to protect the tokenized gold assets against potential quantum computing attacks. The trial also involved testing the interoperability of gold tokens using Quantinuum’s post-quantum cryptography (PQC) algorithms to securely move digital assets across distributed ledgers via secure networks.
Enhanced Distribution and Interoperability
One of the key outcomes of the trial was the ability to convert HSBC gold tokens into ERC-20 fungible tokens, thereby improving distribution and interoperability with other DLTs and digital wallets. This advancement opens up new possibilities for the seamless exchange of digital assets.
Standardization and Security
The suite of algorithms utilized in the trial is currently undergoing standardization by the US National Institute of Standards and Technology (NIST) and is designed to withstand future quantum computing attacks. This focus on security and standardization is crucial in ensuring the protection of digital assets in a rapidly evolving technological landscape.
Future Deployment and Expansion
While the specifics of when the quantum-safe methods will be deployed to protect real Gold Token assets remain undisclosed, the successful pilot test has paved the way for the adoption of advanced technologies in real-world business environments. HSBC’s commitment to innovation and security sets a precedent for the future of digital asset trading.
Continued Innovation in Gold Trading
Earlier in 2024, HSBC introduced its Gold Token for retail investors in Hong Kong, allowing them to own fractional shares of physical gold. This initiative demonstrates the bank’s dedication to providing innovative solutions for investors seeking exposure to precious metals.
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