Share page with AddThis

News

Danske Bank claims quantum breakthrough

Cyber padlockDanish academics are heralding a breakthrough in IT security after completing a secure transfer of financial data using quantum communication.

The transaction involved researchers from Demark’s Technical University, KPMG and Copenhagen-based Danske Bank.

Data was transferred between two of the bank’s computers that simulated data centres using continuous variable quantum key distribution, technology developed at DTU that enables the creation and sharing of secure encryption keys using standard telecom fibre optics.

This means that the technology can be used in the bank’s network and eventually in other critical infrastructures and financial institutions.  (CV-QKD). Developed at DTU, it enables the creation and sharing of secure encryption keys “with the help of standard telecom fibre optics.” Therefore, it can be used in the bank’s network and “eventually in other critical infrastructures where security is paramount.”

Claimed to be the first data transfer secured by quantum keys in the Nordics outside of a laboratory, the demonstration was described as “promising for future data security and society’s race against cyber criminals”.

According to Tobias Gehring, associate professor, DTU department of physics, the use of quantum mechanics for IT security instead of standard encryption methods, means that “data transfers are impossible to hack unless you break the laws of physics”.

Lance McGrath, chief security officer, Danske Bank, added: "We are very proud to help the researchers reach this milestone and at the same time gain first-hand experience of quantum-safe data transfer, which potentially has great significance for the future security of digital communication.”

Cyber security is likely to become a much bigger focus for fund managers and their service providers in the years to come due to the increased scrutiny on where firms are investing and their underlying holdings.

Up to date, quantum computing has only featured as a theme for ETF promoters but news of a successful data transfer should provoke curiousity as to how the technology can be used in firms’ operations and not just as an investment theme.

©2022 fundsTech

Most read features

Roundtable: The digital transformation opportunity

The funds industry is looking at adopting new types of technology, from automation to ESG reporting, blockchain and tokenisation. A FundsTech roundtable in March explored how these will revolutionise the sector.

Tokenisation: The incredible potential of tokenisation

Tokenisation offers a new generation of investors access to a wide range of asset classes. But a lack of analysts is one reason why the market may not be ready for the possibilities, finds Nicholas Pratt.

Regulation: Panel calls for simplicity in ESG reporting

The industry accepts the need for more rigour in ESG fund reporting, but the work will be pointless if investors don’t understand the end result. Nicholas Pratt reports.

Cryptocurrencies: Crypto funds face long wait for regulatory approval

While crypto currencies forge onwards, access for investors who prefer to invest through regulated vehicles remains muted. A wait-and-see stance by regulators lies at the centre of this, finds Nicholas Pratt.

Managing the impact of ESG reporting

A rise in ESG reporting requirements is impacting asset managers in every conceivable way. The solution, discovers Nicholas Pratt, is to use all of this newly found data to form a closer relationship with the next generation of investors.

Sponsored Profiles

The importance of trust when building successful client-vendor teams

Petra Roche and Anna Kanior-FlorekFundTech speaks to Metrosoft’s Petra Roche and Anna Kanior-Florek about cross-organisational relationships and why mutual trust...

The digitally connected Global Transfer Agent

Anand Ramachandran, Vice President, Global Head of Solutions, Richard Clarkson, Head of Solutions, Funds and Swapnil Joshi, Senior Strategy Manager from Oracle Financial Services Global...

Data consolidation takes centre stage in asset management M&A

MergersConsolidation between asset management firms is overwhelmingly expected to increase. Operational challenges remain thanks to legacy systems. But in a recent...

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...