The Hong Kong-Shanghai Banking Corporation (HSBC), a global banking leader, revealed the successful completion of its first quantum computing test applied to trading on Thursday.
HSBC researchers integrated a quantum computer processor into their algorithmic trading strategy, which follows predetermined guidelines to carry out transactions, assessing the chances of fulfilling over-the-counter (OTC) bond orders at targeted prices.
HSBC announced that utilizing quantum processing led to a 34% enhancement in forecasting bond prices and the probability of order fulfillment without slippage. Philip Intallura, HSBC’s group head of quantum technologies, remarked:
“Given the trial delivered positive results on current quantum computing hardware, we have great confidence we are on the cusp of a new frontier of computing in financial services, rather than something that is far away in the future.”
Cryptocurrency systems rely on encryption standards susceptible to a powerful quantum computer, stirring discussions among blockchain developers about the timeline for this risk and when a shift to quantum-resistant cryptography will be necessary.
Related: Bitcoin must act fast to beat quantum by 2030: Solana founder
Developers remain divided on the quantum threat
Opinions among blockchain developers are split regarding the timeline for quantum computers overcoming today’s encryption techniques, which are employed in cryptocurrencies as well as banking, military, and consumer finance sectors.
The earliest predictions for “Q-Day,” the point when a sufficiently powerful quantum computer can break modern encryption algorithms, range from five years, around 2030, with many fearing that quantum supremacy will manifest by 2035.
Conversely, some, including Bitcoin (BTC) developer Adam Back, believe quantum supremacy is still decades away, if it is possible at all.
In November 2024, Shanghai University researchers reignited concerns within the crypto community by suggesting that quantum computers had successfully breached current encryption algorithms through a series of experiments.
However, further analysis revealed that the quantum computer had only managed to break a 22-bit key, which is significantly lower than the 892-bit record achieved by classical computers.
For reference, modern encryption keys in RSA encryption range from 2,048 bits to 4,096 bits and can be periodically increased to remain ahead of quantum computing capabilities.
Magazine: Bitcoin vs. the quantum computer threat: Timeline and solutions (2025–2035)
