Investing

One of Japan’s Biggest Banks Bets on Quantum Computing for Finance

IonQ

MUFG Bank, one of the three megabanks in Japan, reportedly invested billions of yen to buy a 18% stake in Groovenauts, a quantum computing startup. The investment makes MUFG the first among Japan’s three largest banks to bet on quantum technology and attempt to leverage it for financial services.

MUGT to Use Quantum Computing for Mitigating Risks

MUFG Bank, the largest bank in Japan and one of the biggest in the world, has invested in Groovenauts, a local startup that develops advanced quantum technology solutions. Through the investment, MUFG seeks to utilize Groovenauts’ quantum tech offerings to improve its financial services.

Specifically, MUFG will use the technology for complex transactions associated with derivatives trading and risk management and boost its operational efficiency. Groovenauts provides computing services via a technique known as “quantum annealing,” which is meant to identify the optimal answer from many combinations.

MUFG acquired an 18% stake in Groovenauts for several billion yen, making the startup the bank’s equity-method affiliate. The move marks the first direct investment in a quantum computing company among Japan’s three megabanks.

The banking giant plans to use Groovenauts’ quantum solutions to cut risks tied to financial derivatives transactions, claiming the technology could reduce the time needed to complete specific tasks from an hour to a few seconds. Further, MUFG is exploring using quantum technology with interactive artificial intelligence (AI).

Why is Quantum Technology Attracting Interest?

MUFG Bank’s investment in Groovenauts underscores the growing interest in quantum technology, which can potentially disrupt numerous industries, including finance. The Tokyo, Japan-based bank seeks to gain a competitive edge in the banking sector through this bet.

Quantum computing is a burgeoning technology that utilizes the laws of quantum mechanics to address issues too complex for classical computers. The rapidly-growing adoption of quantum computing comes as companies face significant economic headwinds, prompting them to look for solutions that can reduce costs, drive revenue, and boost operational effectiveness.

Apart from quantum computing, finance players are also increasingly adopting AI technology. Earlier this year, AI startup FlowX.AI raised $35 million in a funding round to continue developing its platform to improve banks’ digital infrastructure. Meanwhile, as much as 53% of consumers use generative AI solutions to help them with financial planning and investing efforts.

The post One of Japan’s Biggest Banks Bets on Quantum Computing for Finance appeared first on Tokenist.

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.