The Hong Kong Financial Authority (HKMA) has launched a framework to evaluate banks’ preparedness for quantum-computing threats as the town expands its use of tokenized deposits, digital property and blockchain settlement.
On Monday, the HKMA launched a white paper on quantum preparedness and the sector’s first Quantum Preparedness Index (QPI). The index gave the sector an general readiness rating of two.3 out of 10, whereas the white paper discovered that round half of surveyed establishments had no formal post-quantum planning in place. The HKMA stated it goals to realize full sector readiness, represented by a QPI rating of 10, by 2030.
The event comes as Hong Kong strikes extra conventional monetary exercise onto distributed ledgers. Authorities figures present that Hong Kong has issued three batches of tokenized inexperienced bonds totaling about HK$16.8 billion (about $2.1 billion) since 2023, whereas the HKMA is advancing tokenized deposits and digital-asset settlement by Undertaking Ensemble.
The HKMA white paper stated distributed ledger purposes and fee networks rely on cryptography for core capabilities and will face extreme disruption if these protections had been compromised.
It additionally stated one surveyed establishment accomplished a proof of idea making use of post-quantum cryptography to distributed-ledger connectivity and cited HSBC’s 2024 use of quantum-safe expertise to maneuver tokenized gold throughout distributed ledgers.
Hong Kong’s tokenization push raises quantum stakes
The quantum initiative follows the launch of the HKMA’s Fintech 2030 technique in 2025, which made tokenization one in every of 4 strategic pillars in a plan comprising greater than 40 initiatives.
The regulator stated it could speed up real-world asset (RWA) tokenization, regularize tokenized authorities bond issuance and discover tokenized Trade Fund papers, with blockchain settlement supported by e-HKD, tokenized deposits and controlled stablecoins.
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In a Feb. 11, 2026, speech, Hong Kong Monetary Secretary Paul Chan stated banks in Hong Kong held greater than HK$14 billion (about $1.785 billion) in digital property below custody on the finish of 2025, up about 180% 12 months over 12 months, whereas tokenized deposits had reached HK$29 billion ($3.7 billion).
Based on the HKMA white paper, quantum computer systems able to working Shor’s algorithm at scale may ultimately break extensively used RSA and elliptic-curve cryptography. This might enable attackers to decrypt protected knowledge or forge the digital signatures used to authorize transactions, confirm identities and set up belief in monetary methods.
As a result of changing embedded cryptographic methods can take years, the HKMA urged banks to start inventories, danger assessments and migration planning earlier than such machines turn out to be out there.
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