Late last year HSBC tokenized gold that’s stored in its London vault for trading on HSBC Evolve, the bank’s institutional digital platform for FX and precious metal trading. Earlier this year it followed up by making the tokenized gold available to retail Hong Kong clients, supporting fractional ownership. Now HSBC shared its work to ensure tokenized gold is secure in a quantum computing world through a collaboration with Quantinuum, using post-quantum cryptography (PQC).
While many believe quantum computing to be a decade or more away, it’s a huge risk that it could arrive sooner, rendering bank cryptography vulnerable. The BIS Innovation Hub launched Project Leap to investigate the topic.
In its trials, HSBC explored how to move the digital assets across different networks securely, including the ability to convert HSBC’s gold tokens to ERC-20 fungible tokens, the standard supported by Ethereum. HSBC’s Orion tokenization platform uses the permissioned Canton blockchain technology.
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