Banks and Regulators Test Quantum-Resistant Crypto Infrastructure

The financial industry is taking steps to prepare for a potential threat from quantum computers. The Responsible Fintech Institute (RFI) and Safeheron have announced a pilot program to test quantum-resistant crypto wallet functionality and transfers.

The project, which began on August 24, involves banks participating in testing the ML-DSA-65 digital signature standard on a NEAR testnet that is resistant to quantum computers. The goal of this initiative is to determine whether financial institutions can protect digital asset transactions against future threats.

Banks will analyze real-life functions such as wallet creation and sending/receiving of funds onchain, mimicking institutional routine rather than just being used as a theoretical experiment. A suggested MPC model structure of 2 members - non-custodial 2-of-2 - offers institutional control of key ownership without undue complexity at the operational level.

Regulatory stakeholders from several jurisdictions are also involved in the project, including Gelephu Financial Services Office and the Malta Financial Services Authority. The project aims to foster interactions among institutions instead of leaving it up to one bank or regulator to come up with a solution.