On 29 September 2025, the Monetary Authority of Singapore (MAS), together with DBS, HSBC, OCBC, UOB, SPTel and SpeQtral, published a technical report on the successful completion of a proof-of-concept (PoC) sandbox evaluating Quantum Key Distribution (QKD) for secure communications in the financial sector along with Quotes from the Industry. The sandbox followed a Memorandum of Understanding (MoU) signed in August 2024 and builds upon Singapore’s earlier post-quantum cryptography (PQC) experiment with Banque de France. The report highlights the potential of quantum-safe communications to strengthen cyber resilience in financial services against emerging quantum threats.
The foundation of Singapore’s exploration of quantum-safe security was laid in February 2024, when the MAS issued an advisory to financial institutions on addressing cybersecurity risks associated with quantum computing. The advisory called on banks and market participants to begin preparing for post-quantum threats
In August 2024, MAS entered into a Memorandum of Understanding (MoU) with DBS, HSBC, OCBC, UOB, SPTel and SpeQtral to establish a proof-of-concept sandbox for testing QKD in financial services. This MoU created the structure for industry collaboration on quantum-safe experiments
That same year, in November 2024, MAS and Banque de France completed a milestone PQC experiment, successfully securing international electronic communications, complementing the QKD initiative
Between September 2024 and March 2025, the QKD sandbox was conducted in two deployment windows. The first (September–November 2024) involved MAS, DBS and OCBC, while the second (January–March 2025) involved MAS, HSBC and UOB. Both phases tested the performance of QKD stacks deployed at the institutions’ secure data centres
On 29 September 2025, MAS published the technical report consolidating the findings. The report highlights that QKD has strong potential for securing sensitive data exchanges in finance but also requires stronger interoperability standards, tamper-resistant trusted nodes, and greater industry investment to become viable at scale
Technical Report on Quantum Safe Sandbox
The sandbox allowed MAS and participating banks to deepen their understanding of QKD as a cybersecurity technology. With support from SPTel and SpeQtral, the institutions validated that QKD could be deployed to securely transfer sensitive financial data.
The technical report identifies both opportunities and challenges for quantum-safe adoption:
- “QKD has the potential to strengthen the security of communication networks. Financial institutions can use QKD to secure connections, including between data centres and FI premises.”
- “Need for QKD providers and the telecommunications sector to continue strengthening QKD security assurance. This includes establishing comprehensive standards for tamper-resistant, auditable trusted nodes with multi-layer security measures.”
- “More work needs to be undertaken to achieve greater interoperability between different QKD providers. For QKD to be widely adopted in the financial sector, it needs to be able to readily interoperate across different QKD providers and seamlessly integrate into FIs’ diverse IT environments.”
Beyond technical lessons, the sandbox highlighted the importance of senior management support, in-house capability building, and allocation of sufficient budgets and resources for quantum-safe initiatives.
MAS Assistant Managing Director Statement
Vincent Loy, Assistant Managing Director (Technology) and Chief Technology Officer, MAS, stated: “MAS is committed to collaborating with the financial industry to trial promising cybersecurity technologies that can help to safeguard critical financial systems and data against emerging quantum threats. The QKD sandbox marks a significant step in exploring the potential use of quantum-safe solutions within IT systems and networks within the financial sector. The insights gained have enhanced our understanding of QKD technology, helped explore possible ways to strengthen the cyber resilience of Singapore’s financial sector, and uplifted the capabilities of financial institutions to respond to potential cybersecurity threats posed by quantum computing.”
