Banks and regulators launch quantum‑safe crypto pilot

Financial institutions from Europe, the Middle East and Asia began a cross‑regional pilot on August 24 to evaluate post‑quantum security for digital‑asset wallets and blockchain transfers. The test uses a dedicated NEAR testnet and focuses on quantum‑resistant signatures and multiparty computation.

Participants and roles

Two banks – Bison Bank and DK Bank – will create wallets and execute on‑chain transfers in a shared application environment. Regulators from Abu Dhabi Global Market, Bhutan’s Gelephu Financial Services Office and the Malta Financial Services Authority will observe the first phase of the pilot.

Technical approach

The protocol combines multiparty computation (MPC) with NIST‑standardized ML‑DSA‑65 signatures, a parameter set from the U.S. National Institute of Standards and Technology’s FIPS 204 standard finalized in August 2024. MPC allows multiple parties to jointly sign a transaction without ever reconstructing a full private key in a single location.

Objectives and timeline

• Test wallet generation and quantum‑resistant transfers on the NEAR testnet.
• Produce a white paper documenting protocol design, test results, and governance considerations.
• Release the underlying protocol as open‑source software for independent review.

Results, publication dates, and performance metrics have not been disclosed. The pilot does not involve the public NEAR mainnet or customer funds.

Regulatory context

The initiative aligns with broader industry efforts to prepare for a future where large‑scale quantum computers could threaten existing cryptographic schemes. The Bank for International Settlements has warned that migration to post‑quantum systems requires coordinated planning, hybrid defenses, and phased roll‑outs. Similar preparedness activities are underway in Hong Kong, the Algorand Foundation, and Bitcoin development communities.

Next steps

Following completion of wallet and transfer testing, the pilot will move to a governance review, after which the white paper and open‑source code are expected to be published.