Practical continuous-variable quantum key distribution with squeezed light

Abstract: Continuous-variable quantum key distribution (CV-QKD) has gathered significant interest for its potential to achieve high secret key rates and seamless integration with existing optical communication infrastructure. State-of-the-art CV-QKD systems primarily use coherent states for simplicity. However, squeezed states of light have been theoretically shown to offer significant advantages, including higher secret key rates, greater resilience to excess noise, and reduced requirements on information reconciliation efficiency. In this work, we experimentally verify these theoretical predictions and propose and demonstrate a practical squeezed-state CV-QKD system based on modern local-local oscillator and digital-signal-processing techniques. Operating over fibre channels and considering finite-size security against collective attacks we showed the advantages of our system over its coherent state counterpart. Our work paves the way for squeezed states to become practical resources for quantum key distribution and other quantum information protocols.