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“As technology develops and current methods begin to be defeated, we have to make sure we have the most up-to-date robust encryption and security standards,” HSBC CEO for Europe Colin Bell said in an interview.

Participating in the trial involves the bank installing equipment to send test data 62 kilometers (38.5 miles) between its headquarters in London’s Canary Wharf financial district and a data center in the neighboring county Berkshire. 

HSBC said the trial would help it better analyze threats and determine how to protect data.

Quantum key distribution allows two remote parties to agree on a shared secret key to encrypt and decrypt data. 

In 2022, JP Morgan Chase & Co (NYSE:JPM) acknowledged demonstrating the ability of the newly developed QKD network to instantly detect and defend against eavesdroppers as part of a system also involving Toshiba.

Price Action: HSBC shares traded lower by 0.75% at $39.65 premarket on the last check Wednesday.