PAQAAL — EIC Transition Project

Developing Photonic-Electronic Analog Application-Specific Integrated Circuits for a Quantum Secure Coherent Link

About the Project

PAQAAL is a European Innovation Council (EIC) Transition project funded under the Horizon Europe programme (Grant Agreement No. 101213884). Led by CUbIQ B.V. in Eindhoven, the Netherlands, PAQAAL aims to develop the world’s first chip-scale Continuous-Variable Quantum Key Distribution (CV-QKD) transceiver in a standard pluggable form factor — making quantum-secure communications accessible, affordable and deployable at scale.

The project runs from March 2025 to February 2028 with a total grant of €2,499,375 and is structured across nine work packages covering system engineering, photonic and electronic IC design, digital signal processing, prototype packaging, use case validation, and dissemination and exploitation.

The Challenge

Current quantum key distribution systems are large, expensive and power-hungry — costing up to €500,000 per pair, consuming hundreds of watts, and requiring dedicated infrastructure. This makes quantum-secure communications inaccessible to the vast majority of organisations that need it. At the same time, the market is dominated by non-European vendors, creating a strategic vulnerability for European digital sovereignty.

Our Approach

CUbIQ’s PAQAAL technology integrates all the components of a quantum-secure communications engine – quantum random number generation, quantum transmitter, quantum receiver and digital signal processing – into a single compact module compatible with standard optical network infrastructure. The target is a 100× reduction in cost, size and power consumption compared to current state-of-the-art systems, enabling quantum security to be deployed as easily as a standard network transceiver.

Project News & Updates

February 2025

PAQAAL officially launched following signature of Grant Agreement 101213884 with the European Innovation Council and SMEs Executive Agency (EISMEA). CUbIQ B.V. is the sole beneficiary.

March 2025

Project website and PAQAAL brand identity launched. The project logo and visual identity were deployed across all dissemination channels to ensure coherent public communication of PAQAAL results.

March–April 2025

CUbIQ presented at the Optical Fiber Communications Conference (OFC 2025) in San Francisco — one of the leading global events in optical networking. The team engaged with industry partners and potential customers to present the PAQAAL technology roadmap.

April 2025

Dissemination and Communication Plan (D8.2) and Data Management Plan submitted, establishing the framework for open-access publication, FAIR data management, intellectual property strategy and exploitation planning across the project lifetime.

August 2025

PAQAAL Milestone 1 achieved on schedule – strategic manufacturing, foundry and customer validation partners confirmed for the development of the quantum secure engine.

September 2025

CUbIQ demonstrated the world’s first pluggable quantum key distribution module with Tier-1 industry partners, marking a significant step in the transition from laboratory prototype to deployable product.

September 2025

In collaboration with Eindhoven University of Technology, CUbIQ presented three peer-reviewed papers at the European Conference on Optical Communications (ECOC 2025) in Copenhagen, contributing to the scientific community’s understanding of CV-QKD system design, error correction and laser characterisation.

November 2025

CUbIQ commenced participation in a metrology certification programme in collaboration with an international standards body, supporting the path to product certification and market readiness.

February 2026

PAQAAL Milestone 2 achieved on schedule – detailed system specifications completed for all quantum engine subsystems, digital signal processing stack and control software. Two use cases for quantum-secure communications formally defined and validated with industry partners.

March 2026

Reporting Period 1 review meeting held with EISMEA and independent expert panel. All seven Period 1 deliverables submitted on time. Reporting Period 1 covered three completed work packages, which was validated. CUbIQ is now engaged in Reporting Period 2 activities.

Publications

Team

The PAQAAL project is led by CUbIQ B.V., a deep-tech SME based at the Catalyst Building, Eindhoven, The Netherlands, closely affiliated with Eindhoven University of Technology (TU/e). The project team brings together experts in quantum communications, photonic integrated circuit design, digital signal processing, electronic packaging, and commercial strategy.

Funding

This project has received funding from the European Union’s Horizon Europe research and innovation programme under Grant Agreement No. 101213884.

“Funded by the European Union via the European Innovation Council and SMEs Executive Agency (EISMEA). Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the EISMEA. Neither the European Union nor the granting authority can be held responsible for them.”

Contact

CUbIQ B.V.

Catalyst Building, De Lismortel 31

5612 AE Eindhoven, The Netherlands

[email protected]

www.cubiq-technologies.com

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