Key Points
- The Hong Kong Monetary Authority (HKMA) has launched a quantum security framework and the banking sector’s first Quantum Preparedness Index (QPI).
- Hong Kong’s banking industry scored 2.3 out of 10, with roughly half of surveyed institutions lacking formal post-quantum security plans.
- The HKMA aims to achieve full quantum readiness by 2030 as tokenized finance and blockchain settlement continue to expand.
- The initiative supports Hong Kong’s broader strategy to advance tokenized assets, digital deposits and regulated digital finance.
The Hong Kong Monetary Authority (HKMA) has introduced a comprehensive framework to help banks prepare for future cybersecurity threats posed by quantum computing, reinforcing the city’s commitment to building secure digital financial infrastructure.
The regulator unveiled a white paper on quantum preparedness alongside the banking sector’s first Quantum Preparedness Index (QPI), designed to measure how well financial institutions are positioned to address emerging cryptographic risks.
The inaugural assessment gave Hong Kong’s banking sector an overall readiness score of 2.3 out of 10, highlighting significant work ahead as quantum technology continues to advance.
Banks Urged to Prepare Before Quantum Computing Matures
According to the HKMA, approximately half of the institutions surveyed have yet to establish formal strategies for migrating to post-quantum cryptographic systems.
The regulator warned that waiting until large-scale quantum computers become commercially viable could leave financial institutions vulnerable because replacing deeply embedded cryptographic infrastructure may require years of planning and implementation.
To address this challenge, the HKMA is encouraging banks to begin conducting cryptographic inventories, risk assessments and migration planning well before quantum computers capable of breaking current encryption standards become available.
The authority has set an ambitious target of achieving a Quantum Preparedness Index score of 10 by 2030, representing full sector readiness.
Tokenization Makes Cybersecurity More Critical
The quantum preparedness initiative comes as Hong Kong rapidly expands its blockchain-based financial infrastructure.
Since 2023, the government has issued three batches of tokenized green bonds totaling approximately HK$16.8 billion (about $2.1 billion), while the HKMA continues developing tokenized deposits and digital asset settlement through Project Ensemble.
The regulator noted that distributed ledger technologies rely heavily on cryptographic security for validating transactions, protecting digital identities and maintaining trust across financial networks.
As more financial assets move onto blockchain infrastructure, safeguarding these cryptographic foundations becomes increasingly important.
Financial Institutions Begin Testing Quantum-Safe Technology
The HKMA highlighted early progress within the banking sector, noting that one participating institution has already completed a proof of concept applying post-quantum cryptography to distributed ledger connectivity.
The white paper also referenced HSBC’s successful 2024 demonstration of quantum-safe technology used to transfer tokenized gold across blockchain networks.
These initiatives illustrate how major financial institutions are beginning to evaluate security technologies capable of protecting digital financial systems against future quantum computing capabilities.
Hong Kong Accelerates Digital Finance Strategy
The quantum initiative complements the HKMA’s broader Fintech 2030 strategy, introduced in 2025, which identifies tokenization as one of its primary strategic priorities.
The regulator plans to expand real-world asset tokenization, continue issuing tokenized government bonds and explore tokenized Exchange Fund securities supported by blockchain settlement infrastructure, tokenized deposits and regulated stablecoins.
Government data also indicates strong growth in Hong Kong’s digital asset sector, with banks holding approximately HK$14 billion in digital assets under custody and HK$29 billion in tokenized deposits by the end of 2025.
Outlook
Hong Kong’s quantum preparedness initiative demonstrates that cybersecurity is becoming an essential component of the next phase of digital asset adoption. As tokenized securities, blockchain settlement and digital deposits become increasingly integrated into the financial system, preparing for future quantum computing risks will be critical to maintaining trust and resilience. By encouraging early migration toward quantum-resistant cryptography, the HKMA is positioning Hong Kong’s banking sector to support long-term growth in tokenized finance while strengthening the security of its evolving digital economy.
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