While quantum computing is still deemed to be many years away, investment bank Goldman Sachs is already trying to find out how the tech can be used in finance.
To do that, Goldman Sachs has teamed up with QC Ware, a quantum computing startup, the Wall Street Journal reported.
The report revealed that Goldman Sachs worked together with the startup for three months in 2019 to find out what the limitations of the nascent technology were.
Now, the relationship is being extended to investigate how quantum computing could be applied across the bank.
Leveraging quantum computing could have serious benefits as the upcoming technology is expected to sieve through huge datasets extremely fast.
The idea is that instead of using zeros and ones like the computers of today, a quantum computer would be able to use quantum bits, so-called qubits, enabling it to store information as zeroes and ones at the same time.
Even though no commercial quantum computer exists yet, QC Ware has still been able to tap into the potential of the nascent technology by connecting businesses with early-stage quantum-computing hardware providers.
Moreover, QC Ware is also assisting businesses in their efforts to create quantum algorithms and applications.
This is what QC Ware will help Goldman Sachs with. Specifically, it will see how quantum computing could be utilised to make the algorithm calculating the theoretical value of an option or contract faster.
This process can take hours today.
Goldman Sachs is not the only bank to look into quantum computing.
The Spanish bank CaixaBank was reported to have deployed a quantum computing algorithm in September to assess the capital at risk for financial assets.
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