#Japan #Tokyo #NEC #Daiwa Securities #F5 Networks

Introduction to PQC

In a significant move towards securing digital communications, Daiwa Securities Group has partnered with NEC Corporation and F5 Networks Japan to launch a proof of concept (PoC) for Post-Quantum Cryptography (PQC). This initiative is part of a broader strategy to enhance the security of online services provided by Daiwa Securities in anticipation of advancements in quantum computing.

The Necessity of PQC

Quantum computers are progressing rapidly, and their potential capabilities may soon jeopardize the safety of conventional public-key cryptographic systems and digital signatures. Given the pressing need for financial institutions, which handle critical customer data, to adopt PQC technologies, this collaboration demonstrates commitment to proactively securing operations. Daiwa Securities and its partners aim to demonstrate the feasibility and effectiveness of PQC within the securities sector.

Details of the Proof of Concept

The PoC will take place in a development environment focused on Daiwa Securities’ online services, scheduled from September 2025 to March 2026. The primary objectives include:

• - Application of PQC: Implementing PQC technology in internet communications used by Daiwa Securities.
• - Evaluation Metrics: Assessing the impact of PQC on communication speed, compatibility with existing processing systems, and overall stability of the solution.

The expertise of NEC and F5 Networks will play a crucial role in ensuring that the implementation is not only secure but also scalable and effective in real-world applications.

Outcomes and Objectives

Upon completion of the PoC, the findings will be compiled into a white paper. This document will serve as a vital resource for promoting PQC adoption across the financial sector, providing insights into the technical challenges and solutions encountered during the demonstration.

Daiwa Securities aims to establish comprehensive guidelines for the formal implementation of PQC based on the outcomes of this initiative. This step is crucial for creating a robust security framework that aligns with the expected practical applications of quantum computing in the future.

Roles of the Partners

Each partner in this collaboration brings unique strengths. Daiwa Securities leads the project, overseeing the PoC's execution and ensuring alignment with business needs. NEC contributes its extensive experience in cryptography and secure systems to drive the technical aspects of the implementation. Meanwhile, F5 Networks leverages its expertise in application delivery and security to optimize online communications and enhance user experience during the transition to PQC solutions. This triangle of collaboration forms a strong foundation for addressing the complex challenges posed by the evolving cyber landscape.

Conclusion

As the world gravitates towards quantum computing, financial institutions must remain ahead of the curve regarding cybersecurity. The PoC conducted by Daiwa Securities, NEC, and F5 Networks is a step towards ensuring that online services can withstand the future challenges posed by quantum technologies. The results of this initiative will not only bolster Daiwa Securities’ digital offerings but also serve as a blueprint for the industry-wide adoption of advanced cryptographic techniques. The pursuit of a secure digital future hinges on such pioneering efforts, and the implications for data security in finance are profound as the era of quantum computing approaches.