tl;dr
HSBC and IBM achieved a quantum breakthrough in bond trading, boosting trade success rates by 34% through hybrid quantum-classical computing. The collaboration leveraged IBM's quantum processors to uncover hidden market patterns, marking a pivotal shift in financial technology.
**HSBC and IBM Achieve Quantum Breakthrough in Bond Trading**
On 25 September 2025, HSBC made history by unveiling what is believed to be the first empirical evidence of quantum computing’s real-world potential in finance. Collaborating with IBM, the bank demonstrated how quantum and classical computing can work together to revolutionize algorithmic bond trading, achieving a 34% improvement in predicting trade success rates compared to traditional methods.
The trial focused on the complex world of corporate bond trading, where algorithmic strategies automatically price customer inquiries in competitive bidding processes. These systems rely on real-time market data and risk assessments, but the sheer complexity of variables often leaves room for error. HSBC and IBM’s experiment used quantum computing to tackle this challenge, leveraging IBM’s quantum processors to analyze market data and uncover hidden pricing patterns that classical systems struggled to detect.
In over-the-counter (OTC) markets—where bonds are traded directly between parties without a centralized exchange—algorithmic models estimate the likelihood of a trade being filled at a quoted price. By testing real-world trading data on IBM’s quantum computers, the teams found that quantum-enhanced approaches outperformed standard classical methods. This improvement was particularly notable in noisy, high-stakes environments where small data signals can have outsized impacts.
The breakthrough hinged on integrating quantum computing with classical workflows. IBM’s Heron processor, the company’s most advanced quantum chip to date, augmented traditional systems by exploring computational spaces that classical computers cannot access. This hybrid approach allowed HSBC to refine its predictive models, giving traders a sharper edge in a market where milliseconds and precision can mean millions.
Philip Intallura, HSBC’s Group Head of Quantum Technologies, called the results “a ground-breaking world-first.” He emphasized that the trial proves quantum computing is no longer a distant dream but a tool with immediate, scalable applications. “We’re on the cusp of a new frontier in financial services,” he said, highlighting the growing competitive advantage quantum technology could offer as hardware advances.
Jay Gambetta, IBM’s Vice President of Quantum, praised the collaboration as a model for merging domain expertise with quantum innovation. “This work shows what’s possible when we combine classical strengths with quantum’s vast computational potential,” he added.
Quantum computing’s power lies in its ability to process information in ways classical systems cannot. By harnessing quantum mechanics, these machines can solve problems deemed intractable for even the most powerful supercomputers. For HSBC, this means unlocking new efficiencies in a sector where accuracy and speed are paramount.
As IBM’s quantum computers become more accessible via the cloud and open-source tools like Qiskit, the financial industry is poised to explore more applications. While this trial focused on bond trading, the implications extend to risk management, portfolio optimization, and beyond.
For now, HSBC and IBM’s achievement marks a pivotal moment: a tangible step toward a future where quantum computing isn’t just a scientific marvel but a financial game-changer. What’s next? Only time—and qubits—will tell.