Erste Group sets new standards in quantum encryption

Erste Group, together the Austrian deeptech company zerothird and A1, has achieved a milestone in securing digital financial flows. In a pilot project in Vienna, a commercial quantum security solution was successfully integrated into the bank’s existing fiber-optic infrastructure for the first time. The underlying technology of entangled Quantum Key Distribution (eQKD) is based on Austrian Nobel Prize-winning research. With this, Erste Group sets new standards for the future protection of sensitive customer data in the post-quantum era. Following the successful pilot in Vienna, Erste Group plans to gradually upgrade its international banking infrastructure with quantum secure solutions in the future. 

“Europe and Austria should not underestimate their potential. Together with A1 and zerothird, we are showing what can be achieved. We are preparing our infrastructure for the era of quantum communication, an era in which classic digital encryption will no longer offer sufficient protection. In doing so, we are transforming leading Austrian research into practical and future-oriented application,” says Peter Bosek, CEO of Erste Group.

“Trust is the strongest currency in banking. As quantum technologies will rewrite the rules of cybersecurity, we are acting now by piloting quantum‑secure communication and preparing for post‑quantum encryption. Our mission is clear: protect our customers’ data with security built not just for today, but for the future,” explains Maurizio Poletto, COO & CPO of Erste Group," explains Maurizio Poletto, COO & CPO of Erste Group.

Erste Group is the first European banking group to successfully pilot entanglement-based quantum technology. This achievement positions the institution among the top twenty financial service providers worldwide in the field of quantum technology and among the three largest in the European Union according to the ‘Quantum Index’.

Previous cryptography standards are not sufficient

Conventional digital encryption methods are based on mathematical problems that are difficult for today’s computers to solve. However, future quantum computers will be able to solve them within seconds. The first quantum computers are still in laboratories. It is only a matter of time before a commercial breakthrough is achieved. IT and telecommunications infrastructures face the challenge of making their networks quantum-secure.

“Quantum encryption as the next stage of digital communication requires an infrastructure that combines resilience and future-proofing. Banking environments are among the most demanding areas of application due to their complexity and uncompromising security requirements. Together with Erste Group and zerothird, we are laying the foundation for the next generation of trustworthy data transmission,” explains A1 Group CEO Alejandro Plater.

Zerothird's eQKD solution was implemented in Erste Group's critical infrastructure as part of a pilot and has been running flawlessly. The successful encryption and decryption of data demonstrates the industrial maturity and scalability of the quantum-secure solution in the banking environment.

From Vienna to Frankfurt: Pushing the physical boundary

As part of the QUAPITAL project led by zerothird, in which the EU is also participating, a world record is being pursued in collaboration with Erste Group: The goal is to establish a quantum-secure connection between the financial centers of Vienna and Frankfurt. Due to physical signal attenuation in optical fibers, this distance has so far been a major challenge for Quantum Key Distribution (QKD). QKD is a quantum-secure cryptography method in which tamper-proof quantum keys are distributed between a sender and receiver.

With successful implementation, Erste Group would become a global pioneer in bridging large distances in a quantum network. 

“What we are achieving here is much more than a single technology project – it is a strategic step towards true digital sovereignty. Together with our strong partners Erste Group and A1, we are bringing quantum cryptography from cutting-edge research into everyday operational use in critical infrastructures. From Vienna to Frankfurt. Our technology creates an additional, physically based security layer that will also withstand future quantum computers. This marks the beginning of a new phase of cybersecurity in pan-European networks, economically viable and technologically leading from Austria,” emphasizes Felix Tiefenbacher, CEO of zerothird.

The project marks a turning point for European industries. While American and Chinese corporations are investing massively in quantum technology, the EU consortium of QUAPITAL is making a decisive contribution to Europe’s technological sovereignty.