Achieving 95% Quantum Circuit Compression to Drive Finance Innovation
TEL AVIV, Israel, March 25, 2025 – Classiq Technologies, a leading quantum computing software company, announced today that it has successfully achieved significant compression of quantum circuits in implementing quantum algorithms for Monte Carlo simulations as part of a project conducted by Sumitomo Corporation. Sumitomo used Classiq’s quantum platform and quantum algorithms provided by Mizuho-DL Financial Technology Co., Ltd.
Background: Expectations for Quantum Computing Implementation in Finance
In the financial industry, Monte Carlo simulations are widely used for derivative pricing and asset risk evaluation. However, these simulations require the generation of vast scenarios using random numbers, leading to high computational costs and long processing times. Quantum computing has the potential to efficiently handle large-scale probabilistic simulations compared to conventional methods, offering significant benefits in speeding up simulations and improving risk assessment accuracy.
Objective: Evaluating Hardware Resource Reduction Using Two Quantum Algorithms
Quantum Monte Carlo simulations are expected to be used in finance for risk metrics such as Value at Risk (VaR), enabling fast and accurate credit portfolio risk assessments. The project implemented two types of quantum Monte Carlo simulations: traditional Monte Carlo simulation and pseudo-random number-based Monte Carlo simulation proposed by Mizuho-DL FT. The goal was to optimize quantum circuits by comparing these two simulation methods.
Results: Achieving Up to 95% Quantum Circuit Compression While Maintaining Computational Accuracy
The project demonstrated that both approaches achieved up to 95% compression without significantly increasing qubit count. This achievement marks a significant step toward the practical implementation of quantum computing in finance, improving the execution accuracy of quantum algorithms on quantum hardware.
Project Implementation
- Project Conducted by: Sumitomo Corporation
- Demonstration and Support: Classiq
- Algorithm Provision: Mizuho-DL FT
About Classiq
Classiq Technologies provides a quantum software platform that automates quantum programming, enabling a broad range of talents to harness quantum computing without requiring deep, specialized knowledge of quantum physics. Classiq works closely with quantum cloud providers and advanced computation hardware developers to provide software for use with quantum computers, HPC, and quantum simulators.
