Hong Kong sets 2030 quantum-security goal for banks as tokenization grows

Readiness score starts low

According to the HKMA, Hong Kong’s banking sector scored 2.3 out of 10 on the new Quantum Preparedness Index. About half of the institutions surveyed said they have no formal post-quantum plan in place. The regulator’s target is to bring the sector to full readiness, defined as a score of 10, by 2030.

The initiative is meant to address the risk that future quantum computers could break widely used cryptographic systems. The HKMA warned that such a development could allow data to be decrypted or digital signatures to be forged, weakening trust in financial systems. Because cryptography is often deeply embedded in infrastructure, the authority said replacing vulnerable systems could take years, making early planning important.

Tokenization increases urgency

The timing reflects Hong Kong’s broader effort to shift more conventional financial activity onto blockchain-based rails. Since 2023, the city has issued three batches of tokenized green bonds totaling about HK$16.8 billion. At the same time, the HKMA has been pushing tokenized deposits and digital-asset settlement through Project Ensemble.

In its paper, the regulator said distributed-ledger applications and payment networks depend on cryptography and could face severe disruption if those protections are compromised. As tokenized finance expands, the resilience of the underlying cryptographic tools becomes more significant for banks, issuers and settlement systems.

Examples from the market

The HKMA paper points to early signs of experimentation in the sector. It cites one surveyed institution that completed a proof of concept applying post-quantum cryptography to distributed-ledger connectivity. It also references HSBC’s 2024 use of quantum-safe technology to move tokenized gold across distributed ledgers.

These examples remain limited against the broader industry picture shown by the index. The low preparedness score suggests that while some institutions have started testing defenses, much of the sector has yet to formalize migration plans or complete the groundwork needed for wider adoption.

Part of the Fintech 2030 agenda

The quantum-readiness effort sits within the HKMA’s Fintech 2030 strategy, which identifies tokenization as a central pillar. The regulator plans to speed up real-world asset tokenization, make tokenized government bond issuance a regular practice, and examine the use of tokenized Exchange Fund papers. It also envisions blockchain-based settlement supported by e-HKD, tokenized deposits and regulated stablecoins.

The scale of digital-asset activity in Hong Kong’s banking system has also grown. At the end of 2025, banks in the city held more than HK$14 billion in digital assets under custody, up about 180% from a year earlier. Tokenized deposits had reached HK$29 billion.

Against that backdrop, the HKMA is urging banks to begin with inventories of cryptographic systems, assess their exposure and plan migrations well before quantum-capable attacks become practical. The message from the regulator is that tokenization and digital-asset infrastructure are expanding now, while the process of upgrading security may take years.