The memorandum of understanding aims to support quantum-safe digital currency and asset management for central banks, banks and regulated financial institutions.

Experts warn that quantum computers could one day break the encryption that currently protects financial data and blockchain systems. No machine powerful enough exists yet, but the National Cyber Security Centre has advised financial institutions to move to quantum-resistant encryption by 2035. Most estimates put the risk in the 2030s, though Google research suggests it could be as early as 2029.

There are also fears that hackers are already stealing encrypted data to unlock once the technology arrives, a tactic known as “harvest now, decrypt later”.

The firms will work on private networks, tokenised deposits, payments and institutional digital assets. They will also explore a quantum-resistant pound stablecoin, subject to regulatory approval.

Nick Jones, chief executive at Zumo, said: “I recently spoke with someone who oversees cryptography for a major UK bank and suffice it to say he is extremely concerned.”