Daiwa Securities Group and NEC Announce Proof-of-Concept Results for Post-Quantum Cryptography (PQC) in Online Services
Daiwa Securities Group and NEC have announced the results of their proof-of-concept for Post-Quantum Cryptography (PQC) in online services.
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- 📰 Published: April 1, 2026 at 00:30
Daiwa Securities Co., Ltd. (hereinafter "Daiwa Securities"), under the umbrella of Daiwa Securities Group Inc. (hereinafter "Daiwa Securities Group Inc."), along with NEC Corporation (hereinafter "NEC"), F5 Networks Japan GK (hereinafter "F5 Networks"), and DigiCert Japan GK (hereinafter "DigiCert"), are pleased to announce the results of their proof-of-concept (hereinafter "the demonstration") for Post-Quantum Cryptography (hereinafter "PQC") technology, in preparation for the quantum computing era.
This demonstration was conducted with the aim of enhancing the security of internet communications in Daiwa Securities' online services, and verified the technology from a technical perspective for its formal adoption of PQC.
Due to advancements in quantum computer development, it has been pointed out that the security of conventional public-key cryptography may be compromised in the future. Recognizing the urgent need for early adoption of PQC, especially for financial institutions handling sensitive customer information, Daiwa Securities and Daiwa Institute of Research, together with NEC, F5 Networks, and DigiCert, who possess specialized knowledge in PQC, conducted this demonstration using online services as an initiative towards the practical implementation of PQC in the securities industry.
The results of this demonstration, along with considerations on standardization trends and migration approaches, have been compiled into a white paper. The main points are as follows:
Demonstration Results
It was revealed that while the increase in processing time associated with PQC key exchange processing in internet communications is limited, the increase in communication volume and packet count due to larger key sizes necessitates prior confirmation for communication environments where sufficient bandwidth is not secured.Standardization Trends
It was organized that some cryptographic processing used in internet communications is still in the process of standardization within the industry, requiring a phased migration based on future standardization trends.PQC Migration Approach
As multiple cryptographic algorithms are used even in the system verified this time, it was suggested that establishing a dedicated team to consider cryptographic migration and starting to create an inventory of cryptographic usage and algorithms would be effective for a comprehensive response across the entire system.
Based on the verification results, Daiwa Securities Group has formulated a policy for the formal adoption of PQC and will promote security enhancement and the construction of a secure system infrastructure with an eye toward the practical application of quantum computers.
■Roles of Each Company
Daiwa Securities Group Inc. | Responsible for group-wide collaboration, coordination, progress, and risk management, and formulated the policy for PQC adoption balancing security and convenience for Daiwa Securities Group's online services based on the verification results. |
Daiwa Securities Co., Ltd. | Verified the compatibility, processing performance, and operational impact of applying PQC to online services in this demonstration activity, and will reflect the results in the formulation of system design and operational policies for actual operation. |
Daiwa Institute of Research | Leveraging its knowledge from previous PQC proof-of-concept initiatives, it consistently conducted the process from building the verification environment to scenario creation, technical verification, and evaluation. Furthermore, it compiled the results into a white paper, contributing to knowledge sharing and deeper discussion within the financial industry. |
NEC Corporation | Provided expert opinions on PQC for the demonstration, contributing to the improvement of technical reliability. It also reviewed the white paper, utilizing its research achievements and knowledge in quantum technology. |
F5 Networks Japan GK | Provides PQC-compatible Application Delivery Controllers (ADCs), supporting the foundational technology for realizing next-generation network infrastructure. |
DigiCert Japan GK | As a leading global Certificate Authority participating in the creation of internet standards, it provided expertise on international standardization trends for PQC and Public Key Infrastructure (PKI) for the secure operation of public-key cryptography. |
Please check the detailed white paper on the Daiwa Institute of Research website:
https://www.dir.co.jp/report/technology/security/20260331_025651.html
End of Release
[1] Post-Quantum Cryptography (PQC) refers to a general term for cryptography that is considered to maintain its security even when quantum computers with sufficient computing power become practical.
＜Inquiries regarding this matter＞
NEC, Second Financial Solutions Division
E-Mail: [email protected]
FAQ
What is the proof-of-concept for Post-Quantum Cryptography (PQC) technology in preparation for the quantum computing era?
This is an experiment to verify the impact of applying cryptographic technology (PQC), which can maintain its security even when powerful quantum computers emerge in the future, to Daiwa Securities' online services. This prepares for future cybersecurity risks.
Why is the introduction of PQC necessary?
There is a risk that the cryptographic technologies widely used in current internet communications could be deciphered by powerful quantum computers in the future. As a financial institution, we believe early adoption of PQC is necessary to protect our customers' important information.
What were the findings of this demonstration?
It was found that while the impact on communication speed was limited with the introduction of PQC, the amount of data required for encryption (key size) increases, potentially causing a decrease in communication speed or delays depending on the communication environment. It was also suggested that migrating to PQC requires a phased approach and a system for managing cryptographic methods across the entire system.
What are the future plans?
Based on the results of this demonstration, Daiwa Securities Group will formulate a policy for the formal adoption of PQC and proceed with strengthening security and building a secure system infrastructure with an eye toward the practical application of quantum computers.