HSBC has successfully tested quantum computing in algorithmic bond trading, showing a 34% increase in price prediction and order execution.
HSBC tests quantum computers in bond trading
The international bank HSBC has used quantum computers for the first time in algorithmic trading. Researchers used a quantum processor to predict the probability of over-the-counter (OTC) bond orders being executed at the right price.
The results were encouraging: the accuracy of price prediction and the probability of filling orders without slippage increased by 34%.
“Given that the experiment has already yielded positive results on modern equipment, we are confident that we are standing on the threshold of a new era in financial technology,” said Philippe Intallura, head of quantum technology at HSBC.
Threat to cryptocurrencies
The HSBC news has intensified discussions in the crypto community. After all, cryptocurrencies, like banking or military systems, rely on modern encryption standards. A sufficiently powerful quantum computer can theoretically break them.
Blockchain developers argue about when “Q-Day” will come — the moment when quantum machines will be able to break existing cryptography. Forecasts range from 2030 to 2035, and some, like Bitcoin developer Adam Beck, believe that this may not happen for decades.
What experiments in China have shown
In November 2024, scientists from Shanghai University announced their success in breaking encryption using quantum computers. But later analysis showed that they only managed with a 22-bit key. For comparison, the record for a classical computer is 892 bits, and modern RSA standards use keys from 2,048 to 4,096 bits.
So, a real quantum threat is still a long way off, but financial giants like HSBC are already preparing for it.
