Hong Kong prepares banks for quantum threats by 2030
Hong Kong prepares banks for quantum-era cyber risks with a new HKMA framework aiming for full sector readiness by 2030. The Quantum Preparedness Index scored banks just 2.3 out of 10 as the city expands tokenized deposits, digital assets and blockchain settlement.
On Monday, the Hong Kong Monetary Authority launched a white paper on quantum preparedness and the sector's first Quantum Preparedness Index (QPI). The step comes as Hong Kong scales tokenized finance, digital assets and blockchain settlement. Follow related coverage in our Fintech & Crypto Alerts hub.
Key Takeaways
- The HKMA aims for full banking-sector readiness against quantum-related security risks by 2030.
- The debut Quantum Preparedness Index scored the sector 2.3 out of 10; a score of 10 marks full readiness.
- Around half of surveyed institutions had no formal post-quantum planning in place.
- Hong Kong has issued about HK$16.8 billion in tokenized green bonds since 2023 while advancing Project Ensemble.
- The regulator urged banks to start cryptographic inventories, risk assessments and migration planning early.
What did the HKMA launch for quantum readiness?
According to Cointelegraph's report, the HKMA introduced the white paper and QPI to gauge how prepared banks are for quantum-computing threats. The authority said it wants the sector to reach a QPI score of 10 by 2030.
The white paper found that roughly half of surveyed institutions lacked formal post-quantum planning. Distributed ledger applications and payment networks rely on cryptography for core functions and could face severe disruption if those protections were compromised, the paper said.
One surveyed institution completed a proof of concept applying post-quantum cryptography to distributed-ledger connectivity. The report also cited HSBC's 2024 use of quantum-safe technology to move tokenized gold across distributed ledgers.
Why does tokenization raise the quantum stakes?
Hong Kong is moving more traditional financial activity onto distributed ledgers. Government figures show three batches of tokenized green bonds totaling about HK$16.8 billion (about $2.1 billion) since 2023. The HKMA is also advancing tokenized deposits and digital-asset settlement through Project Ensemble.
The quantum work follows the HKMA's Fintech 2030 strategy launched in 2025, which made tokenization one of four strategic pillars across more than 40 initiatives. Plans include accelerating real-world asset tokenization, regularizing tokenized government bond issuance and exploring tokenized Exchange Fund papers, with blockchain settlement supported by e-HKD, tokenized deposits and regulated stablecoins.
In a Feb. 11, 2026 speech, Financial Secretary Paul Chan said banks held more than HK$14 billion in digital assets under custody at the end of 2025, up about 180% year over year, while tokenized deposits had reached HK$29 billion.
How could quantum computers threaten bank cryptography?
The HKMA white paper warned that quantum computers capable of running Shor's algorithm at scale could eventually break widely used RSA and elliptic-curve cryptography. That could let attackers decrypt protected data or forge digital signatures used to authorize transactions, verify identities and establish trust.
Because replacing embedded cryptographic systems can take years, the HKMA urged banks to begin inventories, risk assessments and migration planning before such machines become available. The message is clear: quantum readiness is now part of Hong Kong's tokenization roadmap, not a distant tech footnote.