Exeter research highlighted as quantum application to the financial sector
A minimalistic futuristic quantum computer solving financial optimization. The quantum processor is sleek and glowing with subtle blue and purple neon.webp
A pioneering new initiative, earmarked as one of the highest-valued projects in quantum finance, has been heralded at the recent World Economic Forum.
The project, developed through an international collaboration between the Universities of Exeter and Verona, and in conjunction with Intesa San Paolo, IBM, and Banca d’Italia, marks a step forward in the use of quantum computing for financial services.
The project is designed to tackle one of the financial sectors most pressing challenges: optimizing securities settlements in Europe’s TARGET2-Securities (T2S) system.
T2S is a safe platform for investors and sellers to buy and sell stocks. A main challenge is to minimize any delay in processing high transaction volumes, which can have a ripple effect across global markets.
By testing a novel quantum algorithm on IBM’s superconducting devices, the team optimized batches of up to 40 transactions, while also pioneering noise-mitigation techniques to improve accuracy.
Albeit the small size, this marks a leap towards practical quantum applications in finance, demonstrating how early-stage quantum systems can address small-scale, real-world instances of problems that may cost institutions millions in delays and liquidity risks every day.
“Nowadays, we are struggling finding real-world applications for quantum computers. This work, in collaboration with European central banks and leading quantum tech companies, can lead towards a future where quantum and classical co-exist to solve problems that are now inaccessible” says Luca Dellantonio, quantum algorithm expert.
According to the World Economic Forum report , quantum technologies are poised to transform finance by solving intractable optimization problems, accelerating risk analysis and securing transactions through unbreakable encryption. Financial sectors leveraging quantum advancements could unlock up to $2 trillion in economic value by 2035, with early adopters gaining significant competitive advantages in portfolio management, fraud detection, and operational efficiency.
The collaboration focused on optimizing securities transaction settlements (a critical challenge in global financial infrastructure) and demonstrated quantum computing’s potential to revolutionize complex financial systems. The project united quantum researchers (including algorithm designers Francesco Martini and Daniele Lizzio Bosco), financial experts Carlo Barbanera and Serena Bernardini from Banca d’Italia (who provided T2S use cases and domain knowledge), and quantum algorithm experts coordinated by Luca Dellantonio.
Under the leadership of Giuseppe Bruno, Banca d’Italia’s quantum advisor, the project exemplifies how academia, central banks, and industry leaders like IBM can collaboratively advance quantum-ready solutions. With plans to scale the approach to thousands of transactions, this research lays the groundwork for quantum computing to reshape financial infrastructure, thus turning theoretical promise into reality.
