A collaborative initiative involving the Universities of Exeter and Verona, Intesa San Paolo, IBM, Banca d’Italia, and other partners was showcased at the World Economic Forum. The project aims to enhance Europe’s TARGET2-Securities (T2S) system by applying quantum computing to optimize securities settlements, crucial for efficient stock transactions.
Researchers tested a novel quantum algorithm on IBM’s devices, managing up to 40 transactions with noise-mitigation techniques. Despite the small scale, this work demonstrates potential for practical financial applications. Led by Giuseppe Bruno of Banca d’Italia, the team plans to expand the approach to thousands of transactions, potentially transforming financial infrastructure. The World Economic Forum highlights the potential of quantum technologies to add $2 trillion to the economy by 2035.
Introduction To Quantum Finance Project
The quantum finance project, spearheaded by a collaboration between the Universities of Exeter and Verona, along with Intesa San Paolo, IBM, and Banca d’Italia, aims to address a critical challenge in the financial sector: optimizing securities settlements within Europe’s TARGET2-Securities (T2S) system. This platform facilitates safe stock transactions, but delays in processing high volumes can disrupt global markets.
To tackle this issue, the team developed a novel quantum algorithm tested on IBM’s superconducting quantum devices. They implemented noise-mitigation techniques to enhance accuracy, crucial given current quantum computing limitations. The project successfully optimized batches of up to 40 transactions, marking progress toward practical quantum applications in finance.
The implications extend beyond immediate optimizations. Quantum technologies could unlock $2 trillion in economic value by 2035, impacting portfolio management and fraud detection. This project exemplifies how quantum computing can transform financial infrastructure, turning theoretical potential into tangible solutions.
The collaboration involved researchers from academia, industry, and regulatory bodies, ensuring a comprehensive approach to addressing the challenges of integrating quantum technologies into modern financial systems. The lessons from this project provide valuable insights into the future development of quantum finance applications.
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