Free-space Quantum key distribution (QKD) has shown the potential for the practical production of cryptographic key for ultra-secure communications. The performance of any QKD system is ultimately limited by the signal to noise ratio on the single-photon channel, and over most useful communications links the resulting key rates are impractical for performing continuous one-time-pad encryption of today's broadband communications. We have adapted clock and data recovery techniques from modern telecommunications practice, combined with a synchronous classical free-space optical communications link operating in parallel, to increase the repetition rate of a free-space QKD system by roughly 2 orders of magnitude over previous demonstrations. We have also designed the system to operate in the H-alpha Fraunhofer window at 656.28 nm, where the solar background is reduced by roughly 7 dB. This system takes advantage of high efficiency silicon single-photon avalanche photodiodes with <50ps timing resolution that are expected to enable operation at a repetition rate of 2.5 GHz. We have identified scalable solutions for delivering sustained one-time-pad encryption at 10 Mbps, thus making it possible to integrate quantum cryptography into first-generation Ethernet protocols.© (2006) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.