Singapore Invests $74.3M in Quantum Computing & AI for Finance

The Monetary Authority of Singapore (MAS) has committed 100 million Singapore dollars ($74.36 million) to enhance the finance sector's quantum computing and artificial intelligence (AI) capabilities.

Objective

This funding aims to help local financial institutions build quantum computing infrastructure and accelerate AI development and adoption. The MAS introduced the Financial Sector Technology and Innovation Scheme (FSTI 3.0) in 2022 to bolster Singapore’s position as a fintech hub. With this latest commitment, the regulator added another $74.36 million on July 18.

Co-Funding Details

Eligible financial institutions can receive up to 50% co-funding for establishing quantum computing technology centers and developing institutional use cases. Additionally, companies working on quantum-based cybersecurity solutions can obtain up to 30% co-funding.

AI Innovation Centers

A portion of the fund will support the creation of AI innovation centers where AI models can be developed, trained, and deployed across various applications. MAS emphasized the potential for AI to address industry-wide challenges that individual financial institutions cannot solve alone.

AI Pilot Project

The first AI pilot project will focus on scam and fraud detection, involving banks, technology solution providers, and public agencies.

Scheme Duration

The FSTI scheme is valid until March 2026. The Singapore government may consider extending the scheme based on its impact on the fintech landscape.

Recent Regulatory Approval

In related news, MAS granted full regulatory approval to Paxos, the issuer of the gold-backed stablecoin Pax Gold (PAXG), on July 2. This approval will allow Paxos to launch a stablecoin compliant with MAS’s upcoming regulatory framework. The Development Bank of Singapore (DBS), Southeast Asia’s largest bank by assets, will serve as Paxos’ primary banking partner, managing cash and custody for the Paxos stablecoin reserves.