Broomfield-based Quantinuum, in collaboration with Tokyo-based Mitsui & Co. Ltd. and NEC, announced the successful delivery of quantum tokens across a 10km fiber-optic network in Japan, marking the first-ever accomplishment of its kind. This trial demonstrated fast transaction verification at the point of exchange, a crucial advancement for quantum key distribution (QKD) technology.
Quantum tokens are designed to provide unforgeability, privacy and fast settlement, addressing the needs of asset trading without the communication overheads associated with traditional financial systems. The transmission utilized commercial QKD devices provided by NEC and is seen as a pivotal step toward the deployment of ultra-high-security quantum tokens for applications like tokenized asset security and high-speed trading.
Ilyas Khan, founder and chief product officer at Quantinuum, said: “The original motivation for quantum communications was the exchange of money, as envisaged by Stephen Wiesner. Today, we have demonstrated real-world security enhancements for financial systems using off-the-shelf quantum communications hardware. This opens the door to a new era in quantum-enhanced security with wide applicability, providing commercial organizations with something concrete to utilize.”
Koji Naniwada, deputy general manager, Quantum Innovation Dept. at Mitsui, said: “Quantum tokens will increase the security of digital assets, while improving transaction performance and maintaining privacy. These topics are critical for our customers and partners in the financial sector and this demonstration is a valuable outcome of our partnership with Quantinuum.”
The technology behind quantum tokens relies on the no-cloning theorem of quantum physics to prevent forgery and double-spending. Unlike traditional payment systems that check multiple systems for fund availability, quantum tokens enable near-instant transaction settlements by allowing only the intended recipient to receive the correct token data, which can be spent at one location in the future. As shown in recent trials with HSBC, securing digital assets in the quantum age is increasingly urgent for the financial sector, which looks to quantum technology for solutions to complex challenges.
