The Hong Kong-Shanghai Banking Corporation (HSBC), a major player in international banking, revealed the successful completion of its first test using quantum computing in a trading context on Thursday.
HSBC researchers utilized a quantum computer processor within their algorithmic trading framework—a trading strategy that operates on set rules to execute transactions—to assess the chances of executing over-the-counter (OTC) bond orders at the intended price.
HSBC announced a remarkable 34% enhancement in predicting bond prices and the likelihood of order fulfillment without slippage due to quantum processing. Philip Intallura, HSBC’s head of quantum technologies, commented:
“With the trial producing favorable outcomes on current quantum hardware, we are confident that we stand at the brink of a new era of computing in financial services, rather than something distant.”
The encryption standards securing cryptocurrencies could be compromised by a powerful enough quantum computer, sparking discussions among blockchain developers about the timing of this threat and when a transition to quantum-resistant cryptography should be initiated.
Related: Bitcoin needs to act quickly against quantum threats by 2030: Solana founder
Developers are split on the quantum threat
Opinions among blockchain developers are divided regarding the timeline for when quantum computers might overpower current encryption techniques that secure cryptocurrencies and are vital in banking, military, and consumer financial sectors.
Some forecasts place “Q-Day”—the point at which a sufficiently advanced quantum computer could break modern encryption—within five years, around 2030, with a number of developers fearing that quantum supremacy will emerge by 2035.
Conversely, some such as Bitcoin (BTC) developer Adam Back argue that achieving quantum supremacy may still be decades away, if it’s feasible at all.
In November 2024, a study by researchers at Shanghai University heightened concerns within the crypto community, suggesting that quantum devices had managed to breach modern encryption algorithms during several tests.
However, a detailed examination of the experiment indicated that the quantum computer succeeded only in breaking a 22-bit key, significantly less than the 892-bit benchmark established by classical computers.
For reference, current RSA encryption keys range from 2,048 bits to 4,096 bits and can be periodically increased to outpace quantum processing advancements.
Magazine: Bitcoin vs. the quantum computer challenge: Timeline and strategies (2025–2035)
