Imagine buying and selling tokenized physical gold with technology so secure, it’s protected against potential future quantum computing attacks. Well, that’s exactly what HSBC claims to have achieved in a groundbreaking trial.

One year after the bank embarked on the journey of tokenizing gold bullions using distributed ledger technology (DLT), HSBC announced on September 19 a successful test of quantum-secure methods to safeguard these valuable assets.

Partnering with Quantinuum, a leading quantum technology provider, HSBC utilized Quantum Origin, a state-of-the-art quantum randomness technology, for the trial. The result? A quantum-secure environment for digital assets to move safely across distributed ledgers via secure networks.

This trial also tested the interoperability of HSBC’s gold tokens, enabling the conversion into ERC-20 fungible tokens, enhancing distribution and compatibility with other DLTs and digital wallets.

The suite of algorithms employed in the trial is currently undergoing standardization by the US National Institute of Standards and Technology (NIST), ensuring protection against future quantum computing attacks.

Earlier in 2024, HSBC introduced its Gold Token for retail investors in Hong Kong, offering fractional ownership of physical gold, making the asset more accessible to a wider audience.

Philip Intallura, Global Head of Quantum Technologies at HSBC, expressed his confidence in the success of the pilot, stating, “This pilot successfully demonstrated the viability of deploying these advanced technologies in a real-world business environment.”

While the exact timeline for the deployment of quantum-safe methods to protect tokenized gold assets remains undisclosed, the potential for secure digital transactions in the future is promising.

As we continue to witness groundbreaking advancements in quantum technology, the integration of quantum-secure methods in traditional banking marks a significant step towards a more secure and efficient financial landscape.

Photo credit: Rokas Tenys/Shutterstock