Quantum Computing Applications

Breaking Quantum News: Real algorithms, real data, real quantum machines HSBC, in partnership with IBM, has delivered the world’s first quantum-enabled algorithmic trading trial. Using live, production-scale data from the European corporate bond market, HSBC integrated IBM’s quantum processors with classical systems—achieving up to a 34% improvement in predicting the probability of winning trades compared with classical methods alone. Why it matters: - Bond trading is one of the most complex, data-heavy challenges in finance. - Classical models struggle to capture hidden pricing signals in noisy markets. - By augmenting workflows with IBM Quantum Heron, HSBC uncovered insights classical systems could not. As Philip Intallura Ph.D, HSBC’s Global Head of Quantum Technologies, put it: “This is a tangible example of how today’s quantum computers could solve a real-world business problem at scale and offer a competitive edge.” And as IBM’s Jay Gambetta emphasized: breakthroughs come from combining deep financial expertise with cutting-edge quantum algorithms—demonstrating what becomes possible as quantum advances. This is not hype. It’s not distant. Quantum is entering the market—today. #QuantumComputing #Finance #Innovation #PQC #QuantumReady

History was made this week in financial markets. HSBC, Europe’s largest bank, has proven that quantum isn’t just theory...it’s a powerful competitive advantage. In partnership with IBM, HSBC’s quantum pilot delivered a 34% improvement in predicting bond trade fill rates at quoted prices. In markets where milliseconds move billions, that edge is transformative. By combining quantum and classical computing, HSBC tackled complex pricing algorithms that factor in real-time market conditions and risks. Philip Intallura, HSBC’s Group Head of Quantum Technologies, explained: “It means we now have a tangible example of how today’s quantum computers could solve a real-world business problem at scale.” Why it matters: • Quantum computing is projected to become a $100B market within a decade (McKinsey). • Finance is the proving ground where nanoseconds and probabilities drive outcomes. • HSBC just demonstrated how quantum can deliver measurable results today. Quantum is still in its early stages, but breakthroughs like this set the benchmarks for what comes next. Which industry do you think will unlock the first trillion-dollar quantum advantage? #QuantumComputing #FinancialMarkets #BondTrading #FinTech #InnovationLeadership #HSBC #IBM

Quantum Finance: A Leap into the Future Quantum finance field explores how the principles of quantum mechanics can revolutionize the financial world. One exciting area within this field is quantum option pricing: utilizing the power of quantum computers to estimate the theoretical value of options with greater accuracy and efficiency than classical methods. The research paper "Option Pricing using Quantum Computers", presented below, explores precisely this. It details a methodology for pricing various types of options (including vanilla, multi-asset, and even path-dependent options) on a quantum computer using the amplitude estimation algorithm. This algorithm provides a quadratic speedup compared to traditional Monte Carlo simulations, potentially leading to significantly faster and more precise option valuations. The implications for quantum finance are profound. Faster and more accurate option pricing allows for: 1. Dynamic portfolio optimization: Real-time adjustments based on market fluctuations through efficient risk-reward assessment. 2. Enhanced derivatives pricing: Valuing complex financial instruments that are currently computationally prohibitive. 3. Discovering hidden correlations: Unearthing subtle market relationships that elude classical analysis, leading to better-informed investment decisions. However, the future of quantum finance remains a horizon to be crossed. Current challenges include hardware limitations (noisy qubits) and the need for further algorithm development. Nonetheless, the immense potential of quantum computing in finance is undeniable. Quantum finance holds the promise of transforming the financial landscape. With breakthroughs in hardware and algorithms, this field could redefine financial modelling, risk management, and ultimately, the way we make investment decisions. The research on quantum option pricing, as seen in the presented paper, is a crucial step towards this future, laying the groundwork for a new era of financial possibilities. Do give this paper a read! It can give insights into the novel quantum circuits and architecture which can be used to price options. Follow Quant Insider for quant finance related insights and research articles.

Breakthrough for the #quantum internet: For the first time a major telco provider has successfully conducted entangled photon experiments - on its own infrastructure. ➡️ 30 kilometers, 17 days, 99 per cent fidelity. Our teams at T-Labs have successfully transmitted entangled photons over a fiber-optic network. Over a distance comparable to travelling from Berlin to Potsdam. The system automatically compensated for changing environmental conditions in the network.   Together with our partner Qunnect we have demonstrated that quantum entanglement works reliably. The goal: a quantum internet that supports applications beyond secure point-to-point networks. Therefore, it is necessary to distribute the types of entangled photons. The so-called qubits, that are used for #QuantumComputing, sensors or memory. Polarization qubits, like the ones used for this test, are highly compatible with many quantum devices. But: they are difficult to stabilize in fibers.   From the lab to the streets of Berlin: This success is a decisive step towards the quantum internet. 🔬 It shows how existing telecommunications infrastructure can support the quantum technologies of tomorrow. This opens the door to new forms of communication.   Why does this matter for people and society?   🗨️ Improved communications: The quantum internet promises faster and more efficient long-distance communications. 🔐 Maximum security: Entanglement can be used in quantum key distribution protocols. Enabling ultra-secure communication links for enterprises and government institutions 💡Technological advancement: high-precision time synchronization for satellite networks and highly accurate sensing in industrial IoT environments will need entanglement.   Developing quantum technologies isn’t just a technical challenge. A #humancentered approach asks how these systems can be built to serve real needs and be part of everyday infrastructure. With 2025 designated as the International Year of Quantum Science and Technology, now is the time to move from research to readiness. Matheus Sena, Marc Geitz, Riccardo Pascotto, Dr. Oliver Holschke, Abdu Mudesir

Everybody’s asking about the 𝗸𝗶𝗹𝗹𝗲𝗿 𝗮𝗽𝗽 𝗳𝗼𝗿 𝗾𝘂𝗮𝗻𝘁𝘂𝗺 𝗰𝗼𝗺𝗽𝘂𝘁𝗲𝗿𝘀. But when a team actually uses one to explore 𝗳𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹 𝗽𝗵𝘆𝘀𝗶𝗰𝘀 in a way we couldn't before, the 𝘀𝗶𝗹𝗲𝗻𝗰𝗲 from the broader community is deafening. Really? I’ve talked about using quantum computers for exploring physics before. I get it - 𝗶𝘁'𝘀 𝗻𝗼𝘁 𝘁𝗵𝗲 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲, 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝘃𝗲 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝘁𝗵𝗮𝘁 𝗩𝗖𝘀 𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗻𝗮𝗹𝘆𝘀𝘁𝘀 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗵𝗲𝗮𝗿 𝗮𝗯𝗼𝘂𝘁. 𝗕𝘂𝘁 𝗜 𝗳𝗶𝗻𝗱 𝗶𝘁 𝗮𝗯𝘀𝗼𝗹𝘂𝘁𝗲𝗹𝘆 𝗮𝗺𝗮𝘇𝗶𝗻𝗴 𝘁𝗵𝗮𝘁 𝘄𝗲'𝗿𝗲 𝗳𝗶𝗻𝗮𝗹𝗹𝘆 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝘁𝗼𝗼𝗹𝘀 𝘁𝗵𝗮𝘁 𝗮𝗹𝗹𝗼𝘄 𝘂𝘀 𝘁𝗼 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗼𝘂𝗿 𝘄𝗼𝗿𝗹𝗱 𝗼𝗻𝗲 𝗹𝗮𝘆𝗲𝗿 𝗱𝗲𝗲𝗽𝗲𝗿. A new paper from Google 𝗤𝘂𝗮𝗻𝘁𝘂𝗺 𝗔𝗜 & 𝗰𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗼𝗿𝘀, is a perfect case in point. The team tackled a monster of a problem in condensed matter physics: 𝗵𝗼𝘄 𝘁𝗼 𝘀𝗶𝗺𝘂𝗹𝗮𝘁𝗲 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 𝘄𝗶𝘁𝗵 𝗱𝗶𝘀𝗼𝗿𝗱𝗲𝗿. Classically, this is a brute-force nightmare: You have to simulate thousands or even millions of different disorder configurations one by one, which can take an exponential amount of time. 𝗜𝗻𝘀𝘁𝗲𝗮𝗱 𝗼𝗳 𝘀𝗶𝗺𝘂𝗹𝗮𝘁𝗶𝗻𝗴 𝗼𝗻𝗲 𝗰𝗼𝗻𝗳𝗶𝗴𝘂𝗿𝗮𝘁𝗶𝗼𝗻 𝗮𝘁 𝗮 𝘁𝗶𝗺𝗲, 𝗚𝗼𝗼𝗴𝗹𝗲 𝘂𝘀𝗲𝗱 𝘁𝗵𝗲𝗶𝗿 𝟴𝟭-𝗾𝘂𝗯𝗶𝘁 𝗾𝘂𝗮𝗻𝘁𝘂𝗺 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗼𝗿 𝘁𝗼 𝗽𝗿𝗲𝗽𝗮𝗿𝗲 𝗮 𝘀𝘁𝗮𝘁𝗲 𝘁𝗵𝗮𝘁 𝗶𝘀 𝗮 𝘀𝘂𝗽𝗲𝗿𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝗮𝗹𝗹 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲 𝗱𝗶𝘀𝗼𝗿𝗱𝗲𝗿 𝗰𝗼𝗻𝗳𝗶𝗴𝘂𝗿𝗮𝘁𝗶𝗼𝗻𝘀. Then they gave it a tiny kick of energy in one spot, and watched what happened. The result? The energy stayed put. It refused to spread. This is a phenomenon called 𝗗𝗶𝘀𝗼𝗿𝗱𝗲𝗿-𝗙𝗿𝗲𝗲 𝗟𝗼𝗰𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 (𝗗𝗙𝗟). Even though the system's evolution and the initial state were perfectly uniform and disorder-free, the underlying superposition over different "backgrounds" caused the system to localize. 𝗜𝘁’𝘀 𝗮 𝘀𝘁𝘂𝗻𝗻𝗶𝗻𝗴 𝗱𝗲𝗺𝗼𝗻𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗾𝘂𝗮𝗻𝘁𝘂𝗺 𝗺𝗲𝗰𝗵𝗮𝗻𝗶𝗰𝘀 𝗮𝘁 𝘄𝗼𝗿𝗸 𝗼𝗻 𝗮 𝘀𝗰𝗮𝗹𝗲 𝘁𝗵𝗮𝘁’𝘀 𝗶𝗻𝗰𝗿𝗲𝗱𝗶𝗯𝗹𝘆 𝗱𝗶𝗳𝗳𝗶𝗰𝘂𝗹𝘁 𝗳𝗼𝗿 𝗰𝗹𝗮𝘀𝘀𝗶𝗰𝗮𝗹 𝗰𝗼𝗺𝗽𝘂𝘁𝗲𝗿𝘀 𝘁𝗼 𝗵𝗮𝗻𝗱𝗹𝗲, 𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝗶𝗻 𝟮𝗗. But this isn't just a cool physics experiment. This work carves out a concrete path to quantum advantage. The team proposed an 𝗮𝗹𝗴𝗼𝗿𝗶𝘁𝗵𝗺 based on this technique that offers a 𝗽𝗼𝗹𝘆𝗻𝗼𝗺𝗶𝗮𝗹 𝘀𝗽𝗲𝗲𝗱𝘂𝗽 𝗳𝗼𝗿 𝘀𝗮𝗺𝗽𝗹𝗶𝗻𝗴 𝗱𝗶𝘀𝗼𝗿𝗱𝗲𝗿𝗲𝗱 𝘀𝘆𝘀𝘁𝗲𝗺𝘀. So yes, let's keep working toward fault-tolerant machines that can break RSA and optimize your portfolio. But let's not ignore the incredible science happening right now. 📸 Credits: Google 𝗤𝘂𝗮𝗻𝘁𝘂𝗺 𝗔𝗜 & 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗼𝗿𝘀 (arXiv:2410.06557) Pedram Roushan

🚨 New OMB Report on Post-Quantum Cryptography (PQC)🚨 The Office of Management and Budget (OMB) has released a critical report detailing the strategy for migrating federal information systems to Post-Quantum Cryptography. This report is in response to the growing threat posed by the potential future capabilities of quantum computers to break existing cryptographic systems. **Key Points from the Report:** 🔑 **Start Migration Early**: The report emphasizes the need to begin migration to PQC before quantum computers capable of breaking current encryption become operational. This proactive approach is essential to mitigate risks associated with "record-now-decrypt-later" attacks. 🔑 **Focus on High-Impact Systems**: Priority should be given to high-impact systems and high-value assets. Ensuring these critical components are secure is paramount. 🔑 **Identify Early**: It's crucial to identify systems that cannot support PQC early in the process. This allows for timely planning and avoids migration delays. 🔑 **Cost Estimates**: The estimated cost for this transition is approximately $7.1 billion over the period from 2025 to 2035. This significant investment underscores the scale and importance of the task. 🔑 **Cryptographic Module Validation Program (CMVP)**: To ensure the proper implementation of PQC, the CMVP will play a vital role. This program will validate that the new cryptographic modules meet the necessary standards. The full report outlines a comprehensive strategy and underscores the federal government’s commitment to maintaining robust cybersecurity in the quantum computing era. This is a critical step in safeguarding our digital infrastructure against future threats. #Cybersecurity #PQC #QuantumComputing #FederalGovernment #Cryptography #DigitalSecurity #OMB #NIST

We just released the world's first paper on Quantum Agentic AI, focusing on the new, LLM-driven notion of agentic AI that currently transforms how we build autonomous agents! Our team including Prof Bill Buchanan OBE FRSE, Dr. Mark Tehrani, Muhammad Shahbaz Khan and Siddhant Dutta dove deep into the intersection of quantum computing and the new, LLM-driven notion of agentic AI—the concept of autonomous agents that leverage large language models to plan, decide, and act intelligently. Key highlights of our work are: ● The first formal definition of Quantum Agents based on LLM-inspired agentic principles ● New architectures that tightly integrate quantum processors with agent-based reasoning ● Three working prototypes: from Grover-based decision-making to adaptive quantum encryption ● Use cases spanning quantum-enhanced edge AI, chemistry, defense, and hybrid optimization What is the amazing and relevant big thing? Agentic AI is redefining autonomy and decision-making. By bringing quantum computing into the loop, we unlock entirely new horizons—systems that combine the best of classical and quantum intelligence. We’d love to hear your thoughts: Where do you see the biggest impact of Quantum Agents? What real-world problems could they solve today? Wir haben das weltweit erste Paper zu Quantum Agentic AI veröffentlicht, und zwar mit einem Fokus auf den neuen, von LLMs geprägten Agentic-Begriff, der aktuell die Entwicklung von autonomen Agenten neu definiert! Unser Team hat sich an der Schnittstelle von Quantencomputing und dem neuen, von LLMs geprägten Agentic-Begriff positioniert, also Agenten, die mit großen Sprachmodellen eigenständig planen, entscheiden und handeln. Highlights aus unserer Arbeit: ● Die erste formale Definition von Quantum Agents, basierend auf LLM-inspirierten agentischen Prinzipien ● Neue Architekturen, die Quantenprozessoren nahtlos mit Agenten-Logik verknüpfen ● Drei funktionierende Prototypen: vom Grover-basierten Entscheidungsagenten bis zur adaptiven Quantum Image Encryption ● Anwendungsfelder von Quanten-Edge-AI über Chemie bis Verteidigung und hybride Optimierung Was ist das Geniale daran? KI-Agenten verändern derzeit, wie wir über Autonomie und Entscheidungsfindung denken. Mit Quantum Agents kombinieren wir diese neue Form von Intelligenz mit den Fähigkeiten des Quantencomputings – für Anwendungen, die bisher undenkbar waren. Deine Meinung interessiert uns: Wo siehst du die größten Potenziale für Quantum Agents? Welche Probleme könnten Quantum Agents schon heute lösen? #QuantumAI #AgenticAI #QuantumComputing #LLM #AIResearch #Innovation #FutureOfWork #QuantumAgents

Last week #NIST released three post-#quantum #encryption standards. Why is this significant? Put simply, from a practical standpoint: risk management and compliance. First, on risk management: experts now say that quantum computing is less than a decade away. Quantum computers are expected to have the power to search large keyspaces very quickly, which means they will be able to decrypt current encryption. Moreover, it is entirely plausible that encrypted information recorded today is being stored for decryption when quantum computing becomes available. If you speculatively apply quantum-resistant encryption to your data now, you will reduce the risk of an adversary being able to successfully exploit your data when they have access to quantum computing. Second, on compliance: NIST is the governing body for standards in the USA, and many other nations take their encryption standards from NIST, as they do not have resources at the same scale as NIST. You can be certain that NIST-approved post-quantum algorithms will start being mentioned in various compliance checklists, as is the case currently with algorithms such as AES-256 and SHA-256. Note well that these algorithms have #FIPS numbers associated with them - meaning "Federal Information Processing Standard". Briefly, the approved algorithms are: 🔒 ML-KEM, for encrypted key exchange, as FIPS 203 🔒 ML-DSA, for digital signatures, as FIPS 204 🔒 SLH-DSA, for stateless hash-based digital signatures, as FIPS 205 There is a fourth algorithm, FN-DSA, also used for digital signatures, that is expected to be released in the next year.

HSBC's report on 'Asset Tokenisation in the Quantum Age: Future-proofing gold tokens with post-quantum security' 1. HSBC Leads with World-First Quantum-Secured Gold Tokenisation - HSBC became the first global bank to offer tokenised physical gold to both institutional and retail investors via its Orion digital asset platform. - In collaboration with Quantinuum, they’ve successfully trialled the world’s first quantum-secure tokenisation of gold, marking a pioneering move in post-quantum finance. 2. $16 Trillion Opportunity Meets Quantum Threat - Asset tokenisation is on track to become a $16 trillion market by 2030 (Boston Consulting Group (BCG), revolutionising how people invest in gold, real estate, bonds, and art. - But here's the catch: quantum computing threatens the cryptographic backbone of this entire ecosystem—forcing institutions to act now to secure digital assets for the future. 3. Post-Quantum Cryptography Without the Pain - HSBC deployed Post-Quantum Cryptography (PQC) via a PQC-secured VPN- offering a cost-effective, low-latency way to secure DLT networks without redesigning the entire system. - Their proof-of-concept showed no performance loss with transaction speeds hitting 40 TPS, and latency staying below 3.1 seconds. 4. Quantum Keys > Random Keys - Enter Quantum Random Number Generators (QRNGs): a next-gen security layer where randomness isn’t guessed—it’s quantum-proven. - HSBC’s solution boosts key strength and data unpredictability by integrating QRNGs that inject entropy directly into the Linux kernel, making encryption truly future-proof. 5. Interoperable, Cross-DLT, Retail-Ready - HSBC’s gold tokens can now move securely across blockchains, including conversion into ERC-20 tokens, enabling wider distribution across wallets and platforms. - Their system supports fractional gold ownership, opening doors for retail investors while maintaining institutional-grade security. So What? - Tokenisation is the future of finance—but quantum is a material risk - HSBC’s work sheds light on a possible - This potentially sets a new standard for digital asset infrastructure and serves as a blueprint for every financial institution looking to future-proof their tokenisation strategy. Great work Prashant Malik, Philip Intallura Ph.D, Duncan Jones, Kimberley Fewell, Mark Williamson, Del Rajan, Ben Merriman

In a First, Scientists Sent Quantum Messages a Record Distance Over a Traditional Network - MSN Scientists have sent quantum information across a record-breaking 158 miles using ordinary computers and fiber-optic cables. It is the first time coherent quantum communication—an ultrasecure means of transmitting data—has been achieved using existing telecommunications infrastructure, without the expensive cryogenic cooling that is typically required. “Our equipment was running alongside the fibers that we use for regular communication literally buried underneath the roads and train stations,” said Mirko Pittaluga, a physicist and lead author of a study published Wednesday in Nature describing the work. Integrating the technology into existing infrastructure using largely off-the-shelf equipment is a key step in expanding the accessibility of quantum communication and its use in encrypting information for more secure transmission of data, according to multiple physicists and engineers who weren’t involved in the study. “This is about as real-world as one could imagine,” said David Awschalom, a professor of physics and molecular engineering at the University of Chicago who wasn’t a part of the new work. “It’s an impressive, quite beautiful demonstration.” Classical digital information is communicated over the internet in units known as bits that have fixed values of 1 or 0. In contrast, quantum information is transmitted in qubits, which can store multiple values at once, making quantum communications more secure. Pittaluga and his colleagues at Toshiba Europe sent quantum information from regular computers hooked into the telecommunications network at data centers in the German cities of Kehl and Frankfurt, relaying them through a detector at a third data center roughly midway between them in Kirchfeld. The three-location setup enabled the group to extend the distance the messages were sent more than 150 miles, an uninterrupted distance only ever achieved in a laboratory environment. Working at these types of distances, Awschalom said, means that quantum information could be sent across entire metropolitan areas or between nearby cities, making it useful for hospitals, banks and other institutions, for which secure communications are paramount. #cybersecurity #tradtitional #networking #quantumcomputing #qubits #securecommunications