While it remains unclear when a large-scale quantum computer might be able to break today’s encryption, regulators are not waiting. The G7 has urged financial institutions to prepare for quantum-safe migration. In February 2024, the Monetary Authority of Singapore (MAS) issued an advisory highlighting quantum-related cybersecurity risks and encouraging proof-of-concept trials. It has since launched a dedicated quantum track under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to support related projects.
The concern is the “store now, decrypt later” threat, where cybercriminals collect encrypted data today and wait until quantum computers can break it. Post-quantum cryptography (PQC) offers a defence, with algorithms designed to withstand quantum attacks.
However, adoption remains challenging, as many organisations lack the infrastructure flexibility to implement new standards without costly system overhauls.
“PQC is not a ‘plug and play’ replacement for today’s existing cryptography,” says Lim Meng Liang, mathematician and co-founder of local deep tech start-up Aires Applied Quantum Technology. “Most critically, crypto-agility is weak [as] legacy systems, hardware, software and firmware are difficult and costly to upgrade.” Crypto-agility refers to the ability to rapidly update or switch cryptographic algorithms, protocols and keys with minimum operational impact.
Standards are also relatively new, with the US National Institute of Standards and Technology (NIST) only finalising quantum-resistant encryption standards in 2024. Most organisations are therefore taking a wait-and-see approach as industry standards emerge.
The implementation question often requires organisations to assess whether future quantum safety justifies the cost of implementation, including necessary upgrades. “Whether PQC is worth the investment also depends on the information sensitivity lifespan, where data that must remain protected for longer may be more ripe for PQC. This is because attackers may harvest encrypted data today and decrypt it later with quantum computers,” adds Lim.
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The regulatory tailwind
Aires is addressing that deployment challenge through consulting services that assess systems and develop transition roadmaps in close collaboration with clients.
It has also developed its own patented PQC encryption algorithm that does not require organisations to rip out and rebuild their entire cybersecurity architecture. “Rather than replacing the standard NIST algorithms, our proprietary algorithm is intended to add an additional encryption layer to further improve security,” says Lim.
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Aires helps organisations deploy PQC today, on their assets that matter the most, and more importantly, in a much faster way. Furthermore, we give clients vendor-agnostic protection across all vendors, and can deploy PQC on-premise, cloud or in our client’s own hardware, which may appeal to government and regulated industries, like healthcare and financial servicesLim Meng Liang, mathematician and co-founder, Aires Applied Quantum Technology
In practice, the Aires’ quantum-resistant encryption is delivered through application programming interfaces that integrate with common enterprise systems such as human resource management systems, payroll, customer relationship management solutions and cloud platforms.
Aires sees regulation as the main catalyst for demand. “The driver for this is primarily due to regulatory and compliance mandates, particularly in the US, UK and EU, where multi-year mandated migration programmes have already been introduced for the government sector. When this eventually cascades into the private sector, we expect that this originally government rule will become a global commercial mandate,” says Ken Lin, the company’s other co-founder and managing director.
He estimates the global PQC market in the billions of dollars annually, while acknowledging there is no strong consensus on its size. He expects the market to grow at a 30% to 40% CAGR over the next decade.
To compete in the market, Aires is leveraging its proprietary intellectual property (IP). The start-up holds three patents filed in Singapore, the US, and Japan covering encryption, Internet of Things security, and quantum simulation algorithms, plus two additional patents from its founding team.
“The quantum sector is clearly shifting toward an IP-driven model. Recent patent consolidations by leading global firms underline how quickly proprietary algorithms and in-house research are becoming the core determinants of value,” says Lin.
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Aires aims to capture 1% to 3% of the global PQC market within the next one to two years, before targeting 5% to 7% by year five.
“We anticipate that the primary drivers of our revenue will be from enterprise licensing of our proprietary algorithm, followed closely by both the sale of our LionGuard post-quantum encryption software powered by our patented Diophantine technology as well as advisory services and quantum education/training to help clients with their PQC transition,” adds Lin.
LionGuard is the company’s consumer app, offering quantum-safe encryption on Windows, iOS, and Android. Aires also runs quantum education and training programmes accredited by the Institute of Banking and Finance Singapore to support skills development in the financial sector.
Over the next 12 months, the company plans to serve up to 100,000 end users in Southeast Asia and Japan, while exploring global expansion as regulatory timelines become clearer.
Lean deep tech model
Aires’ path to profitability differs from many deep tech and quantum start-ups that depend on high research and development costs coupled with expensive infrastructural spending.
We are blessed with a huge differentiator and competitive advantage as our solutions are less complex to build yet highly efficient and effective.Ken Lin, co-founder and managing director, Aires Applied Quantum Technology
He attributes that to its software/code-based methodology and a combination of human expertise with artificial intelligence. Doing so enabled his team to “build its proprietary algorithms into groundbreaking software solutions in quantum, even in mobile app format, which is not common in the market.”
The company, he adds, keeps development in-house at its Singapore lab rather than outsourcing specialised work due to the limited pool of specialised quantum talent.
Despite its lean structure, Aires has gained international exposure since its launch in 2023 by being selected for quantum showcases in Berlin, Tokyo and South Korea. At the inaugural Berlin Quantum Pioneer incubation programme in 2024, it was one of six companies chosen — and the only Asian company among them — from more than 60 global entrants. The company says it has since received interest from the US, UK, Spain, Canada, Norway and Japan, as well as from national intelligence and research communities.
Framing Aires within the Republic’s broader ambitions, Lin says: “Our business is aligned with the nation as Singapore aspires to be a leading quantum hub in Asia, articulated in the National Quantum Strategy.”
He adds: “We have built proprietary deep tech with core IP in quantum and showcased our works globally over the past three to four years, sometimes independently and even as a contingent of representatives from Singapore to other countries and regions.”
As regulatory expectations tighten, Aires expects quantum security to evolve from a future risk concern into a compliance priority and, eventually, a recurring revenue stream.
