The Hong Kong Monetary Authority (HKMA) launched a framework on Monday to assess banks' preparedness for quantum-computing threats as the city expands its use of tokenized deposits, digital assets and blockchain settlement. The HKMA introduced a white paper on quantum preparedness and the sector's first Quantum Preparedness Index (QPI), giving the sector an overall readiness score of 2.3 out of 10, while the white paper found that around half of surveyed institutions had no formal post-quantum planning in place. The development comes as Hong Kong moves more traditional financial activity onto distributed ledgers, with the government issuing three batches of tokenized green bonds totaling about HK$16.8 billion (about $2.1 billion) since 2023 and the HKMA advancing tokenized deposits and digital-asset settlement through Project Ensemble.
HKMA Quantum Preparedness Index Scores Sector 2.3 Out of 10
The HKMA white paper gave the banking sector an overall readiness score of 2.3 out of 10 on the Quantum Preparedness Index. The HKMA stated it aims to achieve full sector readiness, represented by a QPI score of 10, by 2030. The white paper found that around half of surveyed institutions had no formal post-quantum planning in place.
The HKMA white paper stated that distributed ledger applications and payment networks depend on cryptography for core functions and could face severe disruption if those protections were compromised. One surveyed institution completed a proof of concept applying post-quantum cryptography to distributed-ledger connectivity, and the white paper cited HSBC's 2024 use of quantum-safe technology to move tokenized gold across distributed ledgers.
Hong Kong Issues HK$16.8 Billion in Tokenized Green Bonds Since 2023
Government figures show that Hong Kong has issued three batches of tokenized green bonds totaling about HK$16.8 billion (about $2.1 billion) since 2023. The quantum initiative follows the launch of the HKMA's Fintech 2030 strategy in 2025, which made tokenization one of four strategic pillars in a plan comprising more than 40 initiatives.
The regulator stated it would accelerate real-world asset tokenization, regularize tokenized government bond issuance and explore tokenized Exchange Fund papers, with blockchain settlement supported by e-HKD, tokenized deposits and regulated stablecoins.
Digital Assets Under Custody Reach HK$14 Billion by End of 2025
In a Feb. 11, 2026, speech, Hong Kong Financial Secretary Paul Chan stated that banks in Hong Kong held more than HK$14 billion (about $1.785 billion) in digital assets under custody at the end of 2025, up about 180% year over year. Chan also stated that tokenized deposits had reached HK$29 billion ($3.7 billion).
Quantum Computers Pose Threat to RSA and Elliptic-Curve Cryptography
According to the HKMA white paper, quantum computers capable of running Shor's algorithm at scale could eventually break widely used RSA and elliptic-curve cryptography. This could allow attackers to decrypt protected data or forge the digital signatures used to authorize transactions, verify identities and establish trust in financial systems.
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.
FAQ
What score did Hong Kong banks receive on the Quantum Preparedness Index?
The HKMA gave Hong Kong's banking sector an overall readiness score of 2.3 out of 10 on the Quantum Preparedness Index. The HKMA stated it aims to achieve full sector readiness, represented by a QPI score of 10, by 2030.
How much did Hong Kong issue in tokenized green bonds since 2023?
Government figures show that Hong Kong issued three batches of tokenized green bonds totaling about HK$16.8 billion (about $2.1 billion) since 2023. The HKMA is advancing tokenized deposits and digital-asset settlement through Project Ensemble.
