Responsible Fintech Institute launches quantum pilot

The Responsible Fintech Institute and Safeheron have launched a cross-regional pilot on post-quantum security for digital asset transactions, involving selected banks and regulatory stakeholders from multiple jurisdictions.

The pilot will test post-quantum cryptography in settings closer to institutional use, focusing on wallet generation and on-chain transfers. Safeheron is the technology partner, while the Responsible Fintech Institute is leading governance and cross-jurisdiction coordination.

Participants include Abu Dhabi Global Market, the Gelephu Financial Services Office and the Malta Financial Services Authority on the regulatory side, alongside banks including Bison Bank and DK Bank. The initiative is exploring how financial institutions and regulators could approach cross-border interoperability, operational resilience and governance as quantum-related cyber risks rise on the policy agenda.

The research programme is built around a multi-party computation protocol that supports ML-DSA-65, the digital signature standard set out in NIST FIPS 204. Testing will take place on the NEAR testnet, which the group described as quantum-resistant.

Why it matters

Quantum computing is widely seen as a long-term threat to the public-key cryptography used across much of the financial system. That has prompted banks, technology suppliers and regulators to consider how systems should migrate to newer standards without disrupting operations or weakening controls.

The Bank for International Settlements has said quantum readiness in finance will require coordinated planning, cryptographic agility and phased migration, rather than simply replacing one algorithm with another. That approach is reflected in the pilot, which combines technical testing with a governance workstream and regulatory observation in its first phase.

Regulators in Asia have also given the issue greater prominence. The Monetary Authority of Singapore and the Association of Banks in Singapore recently announced a taskforce focused on cyber and technology resilience linked to emerging threats from advanced artificial intelligence models, while the Hong Kong Monetary Authority has made quantum readiness part of its Fintech 2030 strategy.

Chia Hock Lai, Chairman of the Responsible Fintech Institute, said a multi-party effort was essential.

"No single bank, vendor, or regulator solves this alone," he said. "By bringing policymakers and financial institutions across jurisdictions together to test the same post-quantum architecture, and transparently sharing that research with every participant, we are building a compliance and security reference the whole industry can stand on - and a standard we all helped write."

Testing model

The organisations behind the pilot said participating institutions will use a shared application environment so testing takes place under consistent conditions. Regulators are initially taking part as observers and are expected to contribute to governance questions at a later stage.

The pilot has been designed to stay close to institutional operating models. It uses a tentative non-custodial two-of-two multi-party computation structure intended to reduce operational burden while leaving control of key ownership with participating institutions.

That design matters because digital asset transactions often raise concerns around custody, access controls and accountability, particularly when institutions operate across borders or under different supervisory regimes. A common test environment gives participants a way to compare how quantum-resistant signing methods might fit within those constraints.

Safeheron plans to open-source the underlying post-quantum cryptography code as the work progresses, allowing outside review of the protocol and implementation. The broader proof of concept also envisages publication of a white paper covering the research, protocol design and test findings.

Jag Foo, Chief Security and Policy Officer at Safeheron, linked the initiative to wider concerns about the pace of technological change.

"AI is accelerating the pace of change and likely bringing the quantum threat closer to reality - quantum-ready infrastructure has never been more critical, and the time to act is now," he said. "By integrating NIST's post-quantum signature standard with advanced MPC technology, we are building the architecture required to secure the next generation of financial networks. Safeheron has long advocated for open-source cryptography, because accountability and good governance demand it. We intend to open-source our PQC code. Cryptography securing institutional assets should stand up to independent scrutiny, not ask for trust."

Some participating institutions framed the exercise as part of a broader effort to understand how the sector should prepare for a changing risk environment.

"As the financial sector prepares for future cybersecurity challenges, initiatives that encourage collaboration and knowledge-sharing among industry participants are increasingly important," said António Henriques, Chief Executive Officer of Bison Bank. "We are pleased to support discussions around post-quantum security and to contribute to broader industry understanding of how financial institutions can prepare for the evolving risk landscape."

"We welcome the industry's initiative to identify a reliable protocol that safeguards digital asset transactions," said David Peters, Managing Director of the Gelephu Financial Services Office. "Ensuring the continuing integrity of these transactions and protecting client funds is critical to the smooth functioning of the investment market."

"Preparing for the potential impact of quantum computing on the financial system requires early engagement, collaboration and a better understanding of how post-quantum technologies can operate in practice," said Alan Decelis, Head of Supervisory ICT Risk and Cybersecurity at the Malta Financial Services Authority. "The MFSA welcomes initiatives that bring together regulators, financial institutions and technology experts to explore these challenges in a controlled environment. Participating in this initiative provides a valuable opportunity to contribute a supervisory perspective while developing our understanding of the operational, governance and resilience considerations associated with the transition towards quantum-safe financial services."