Quantum

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    Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
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  <p class="has-drop-cap">MUFG Bank, one of the three megabanks in Japan, reportedly <a aria-label="invested (opens in a new tab)" href="https://asia.nikkei.com/Business/Finance/MUFG-aims-to-use-quantum-computer-tech-in-financial-services" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">invested</a> 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.</p> 
  <h3 id="mugt-to-use-quantum-computing-for-mitigating-risks">MUGT to Use Quantum Computing for Mitigating Risks</h3> 
  <p>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.</p> 
  <p>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 “<a href="https://docs.dwavesys.com/docs/latest/c_gs_2.html" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">quantum annealing</a>,” which is meant to identify the optimal answer from many combinations.</p> 
  <p>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.</p> 
  <p>The banking giant plans to use Groovenauts’ quantum solutions to cut risks tied to financial <a href="https://tokenist.com/investing/derivatives-trading/" rel="noopener noreferrer nofollow" class="deco-link">derivatives transactions</a>, 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).</p> 
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  <h3 id="why-is-quantum-technology-attracting-interest">Why is Quantum Technology Attracting Interest?</h3> 
  <p>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.</p> 
  <p>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.</p> 
  <p>Apart from quantum computing, finance players are also <a aria-label="increasingly adopting AI technology (opens in a new tab)" href="https://impact.economist.com/perspectives/sites/default/files/aiinfinancialservices.pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">increasingly adopting AI technology</a>. Earlier this year, AI startup FlowX.AI <a href="https://tokenist.com/ai-startup-updating-old-finance-systems-raises-35m/" rel="noopener noreferrer nofollow" class="deco-link">raised $35 million</a> in a funding round to continue developing its platform to improve banks’ digital infrastructure. Meanwhile, as much as 53% of consumers use<a href="https://tokenist.com/53-of-consumers-trust-generative-ai-for-financial-advice-report/" rel="noopener noreferrer nofollow" class="deco-link"> generative AI solutions</a> to help them with financial planning and investing efforts.</p> 
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  <p><em><strong>Do you think quantum computing could gain mainstream adoption in finance? Let us know in the comments below.</strong></em></p> 
  <p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/one-of-japans-biggest-banks-bets-on-quantum-computing-for-finance/">One of Japan’s Biggest Banks Bets on Quantum Computing for Finance</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>
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One of Japan’s Biggest Banks Bets on Quantum Computing for Finance

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