Spain-based CaixaBank is the latest institution to claim a quantum computing breakthrough with the development of an application for portfolio hedging using the nascent technology.

Caixa worked with vendor D-Wave Systems on a proof-of-concept that uses the latter’s quantum cloud service to build algorithms for investment portfolio selection and allocation.

The technology has been applied to the bank’s life insurance and pensions arm, VidaCaixa, to speed up its portfolio hedging calculations.

According to CaixaBank CEO Gonzalo Gortazar, the technology not only reduces computing time but also enables more complex modelling better adapted to real-time markets.

The bank is now considering putting the application into general production for use across the firm’s various departments.

“We are very appreciative of seeing this industry growing and maturing, and we look forward to upping our investment and our efforts in quantum,” said Gortazar.

Quantum computing and its ability to perform complex calculations at a faster rate has typically been applied to cyber security as an alternative to encryption.

CaixaBank’s claimed breakthrough follows last month’s news from Denmark’s SaxoBank of a successful pilot using quantum computing to transfer data between systems.

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