The Hong Kong Monetary Authority (HKMA) has launched a framework to assess banks’ preparedness for quantum computing risks as the city expands its exploit of tokenized deposits, digital assets and blockchain settlements.

On Monday, HKMA introduced the Quantum Readiness White Paper and the sector’s first Quantum Readiness Index (QPI). The index gave the sector an overall readiness score of 2.3 out of 10, while the white paper found that around half of institutions surveyed had no formal post-quantum planning. The HKMA said it aims to achieve full sector readiness, represented by a QPI score of 10, by 2030.

The development comes as Hong Kong shifts more established financial activities to distributed ledgers. Government data shows that Hong Kong does released three lots of tokenized green bonds with a total value of approximately HKD 16.8 billion (approximately USD 2.1 billion) From 2023, while HKMA will develop tokenized deposits and digital asset settlement through Project Ensemble.

HKMA White Paper he said distributed ledger applications and payment networks rely on cryptography for core functions and can face significant disruptions if these security measures are compromised.

It was also stated that one of the surveyed institutions had carried out a proof of concept of the exploit of post-quantum cryptography for communication with distributed ledgers and cited information about the exploit by HSBC in 2024 of quantum-secure technology to transfer tokenized gold between distributed ledgers.

The push to tokenize Hong Kong raises the quantum stakes

The quantum initiative follows the launch of HKMA’s Fintech 2030 Strategy in 2025, which made tokenization one of the four strategic pillars of a plan that includes more than 40 initiatives.

The regulator said it will accelerate the tokenization of real-world assets (RWA), regulate the issuance of tokenized government bonds and explore tokenized Exchange Fund securities, with blockchain settlement supported by e-HKD, tokenized deposits and regulated stablecoins.

Related: Hong Kong is launching an initiative to support banks adopt DLT

In a speech on February 11, 2026, Hong Kong Financial Secretary Paul Chan he said at the end of 2025, Hong Kong banks held over HKD 14 billion (about $1.785 billion) in digital assets on deposit, up about 180% year-on-year, while tokenized deposits reached HKD 29 billion (about $3.7 billion).

According to the HKMA white paper, quantum computers capable of running Shor’s algorithm on a enormous scale could eventually break the widely used RSA and elliptic curve cryptography. This could allow attackers to decrypt protected data or forge digital signatures used to authorize transactions, verify identity and establish trust in financial systems.

Because replacing embedded cryptographic systems can take years, the HKMA urged banks to begin inventory, risk assessment and migration planning before such machines become available.

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