Quapital

Quantum-Secure Communication for the Financial Sector Between Vienna and Frankfurt Over 1.000 km

The Vienna-based technology company zerothird, as the consortium leader, is driving forward an EU-funded project for quantum-secure communication in the financial sector. Together with Erste Group, IT service provider NTS, and TÜVIT, the project is designed to support the development of scalable quantum secure key distribution across European long distance communication networks, including a cryptographically protected connection between Vienna and Frankfurt. Erste Group is the first European bank to deploy quantum encryption in live operations and utilize quantum-secure communication under real-world conditions. Together, the team is currently implementing the use of entanglement-based quantum encryption for critical financial infrastructures. The project contributes to work on digital sovereignty and resilient European infrastructure, helping prepare for future developments in quantum computing and their potential implications for current cryptographic systems.

Erste Group, Erste Digital, TÜVIT, NTS, zerothird, EY
Photo credit: Ben Leitner | zerothird

Highlights

  • Construction of the world’s first quantum-secure communications infrastructure between Vienna and Frankfurt
  • The current threat lies in data being intercepted today and decrypted in the future by quantum computers—preparation is crucial
  • An Austrian-German consortium comprising zerothird, Erste Group, NTS, & TÜVIT has secured EU funding for the QUAPITAL project.
  • Vienna-based scale-up zerothird provides quantum hardware and technology for entanglement-based quantum encryption (Entangled Quantum-Key-Distribution, eQKD)
  • Erste Group provides its digital banking infrastructure as the real-world application for quantum-secure key distribution as a scalable service over long distances
  • IT service provider NTS handles integration, operation, maintenance, and securing of the infrastructure, plus cybersecurity with continuous monitoring
  • TÜVIT is responsible for security validation and evaluation of the systems, as well as for security audits
  • The project supports data sovereignty and resilient digital infrastructure in Europe

“Trust is the foundation of our business. By using quantum encryption, we are consistently investing in the security of our customers.”

Erste Group

QUAPITAL is an EU co-funded research and innovation project strengthening Europe’s quantum-secure cybersecurity capabilities for trusted and resilient digital communication. QUAPITAL stands for QUAntum Photonic Intercity TrAnsmission Lattice. The QUAPITAL consortium comprises zerothird, Erste Group, TÜVIT, and NTS, bringing together European expertise in finance, digital infrastructure, quantum technology, and assurance.

At the heart of QUAPITAL lies the eQKD technology developed by zerothird, which for the first time enables scalable, quantum-secure key distribution over distances exceeding 1,000 km, supported by a network of trusted nodes, a commonly used architecture in long distance QKD networks. The infrastructure enables the generation and distribution of quantum protected cryptographic keys, adding an additional layer of security to existing encryption methods for the transmission of sensitive data.

Over the 24-month project duration (2026–2027), the design, implementation, and validation of this connection will be carried out, including integration and operation within existing data center and cloud environments. Furthermore, the project contributes to standardization and certification approaches, thereby supporting the development of secure and interoperable quantum communication systems in Europe.

By demonstrating a real-world use case in the financial sector, QUAPITAL contributes to work on scalable quantum-secure infrastructure in Europe and contributes to strengthening digital sovereignty as well as securing critical infrastructure against future cyber threats.

Zerothird is a developer of hardware and technology for entanglement-based quantum key distribution (eQKD), operating in the quantum-secure communications space. Together with NTS, this results in a comprehensive offering: While zerothird provides the quantum-physical key distribution, NTS handles the integration, operation, and security of the infrastructure. This allows companies to prepare their IT systems for quantum-resilient communication step by step. With Quantum Key-as-a-Service, quantum-secure key distribution is provided as a scalable service, while NTS handles the monitoring, operation, and cybersecurity of the infrastructure.

Left to right: Roland Abfalterer (NTS), Dr. Rupert Ursin (zerothird), Andreas Sauerwein-Schlosser (NTS), Lukas Helm (zerothird), Manuel Neuner (NTS)
Photo credit: Fettinger

“Quantum-secure communication is no longer a future scenario, but a reality. Our task is to make this technological innovation permanently secure.”

Alexander Müllner Chief Commercial Officer, NTS

NTS supports cybersecurity activities in the QUAPITAL project

As a cybersecurity partner in the EU-funded QUAPITAL project, NTS supports cybersecurity-related activities. Through continuous monitoring, ongoing analysis of security metrics, security audits, and penetration tests, the IT service provider supports the secure and resilient operation of quantum secure infrastructures. This includes the development of a holistic quantum security strategy, the evaluation of existing systems, and the implementation and integration of quantum-secure technologies into real-world enterprise environments.

zerothird entanglement-based quantum communication

Zerothird’s technology is based on quantum cryptography and enables the secure distribution of cryptographic keys over long distances and at exceptionally high key rates. Modular hardware and services ensure quantum-secure communication to protect critical infrastructures and data from current and future quantum attacks. Building on the successful pilot project, zerothird is also working within the framework of the EU’s CEF (Connecting Europe Facility) funding program to develop a quantum-secure communication infrastructure that spans national borders. The connection between Vienna and Frankfurt represents only the first segment of a pan-European quantum route aimed at establishing a secure European communication infrastructure.

“Our goal has always been clear: to bring quantum communication out of the lab and into real-world infrastructure. With this project, we are demonstrating that scalable quantum-secure networks are already possible today.“

Felix Tiefenbacher CEO, zerothird

TÜVIT – independent security validation for quantum-secure infrastructures

TÜV Informationstechnik GmbH (TÜVIT), a TÜV NORD GROUP company, provides its long-standing expertise in the evaluation and safeguarding of security-critical future technologies to the QUAPITAL project. As an independent testing and validation partner, TÜVIT is responsible for the security validation and security evaluation of the systems used, as well as for comprehensive security audits along the entire communication route. TÜVIT’s tasks include the development and implementation of a comprehensive Quality Assurance Framework for the Trusted Nodes along the route. This quality and security framework defines the requirements, testing processes and security mechanisms that ensure the nodes of the quantum-secure communication link are consistently trustworthy, tamper-resistant and fully verifiable. TÜVIT is also responsible for testing and evaluating the security boxes as well as the QKD system. With its expertise, TÜVIT ensures that the components and processes used in the project meet the highest security standards and that the quantum-secure communication infrastructure can be operated in a trustworthy manner over the long term.

“Testing is absolutely essential in the field of quantum-secure technologies. Only if systems are independently tested and validated a project like QUAPITAL will have the potential to build lasting trust.“

Sven Bettendorf Quantum Technology Expert at TÜVIT

About QUAPITAL

QUAPITAL stands for QUAntum Photonic Intercity TrAnsmission Lattice. QUAPITAL is an EU co-funded research and innovation project strengthening Europe’s quantum-secure cybersecurity capabilities for trusted and resilient digital communication. The QUAPITAL consortium comprises zerothird, Erste Group, TÜVIT, and NTS, bringing together European expertise in finance, digital infrastructure, quantum technology, and assurance. QUAPITAL draws on patented European quantum communication technology and Nobel Prize-winning expertise in entanglement-based quantum technology. It translates European quantum communication expertise into practical cybersecurity capabilities for trusted and resilient digital communication.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. Neither the European Union nor the granting authority can be held responsible for them.