The Hong Kong Monetary Authority is creating an evaluation system to gauge how well banks can defend against quantum computing threats as the use of tokenized deposits, digital assets, and blockchain-based settlement grows in the region. The authority released a white paper along with a Quantum Preparedness Index, marking the first such measure for the industry. The index gave the sector an overall readiness score of 2.3 out of 10, and the paper noted that about half of the organizations surveyed had no plans in place for post-quantum security.

HKMA Aims for Complete Quantum Readiness in Banking by 2030

The HKMA has set a target for the entire sector to achieve full preparedness, reaching a score of 10 on the index by 2030. This push comes as Hong Kong advances efforts to shift traditional financial activities onto distributed ledger systems. Government figures show that tokenized green bonds totaling around HK$16.8 billion have been issued across three rounds since 2023, while the authority advances work on tokenized deposits and digital asset settlement through Project Ensemble.

The white paper highlighted that distributed ledger applications and networks rely on cryptographic protocols, which could face serious disruption from any security breach. It also noted that one surveyed organization had created a proof of concept using post-quantum cryptography for distributed ledger connections, and referenced HSBCs deployment of quantum-safe technology in 2024 to transfer tokenized gold across ledgers.

Earlier in 2025 the HKMA launched its Fintech 2030 strategy, a five-year initiative focused on fostering innovation, building resilience, and expanding real-world asset tokenization throughout the financial system. The plan centers on four main areas: data, artificial intelligence, resilience, and tokenization, with the goal of updating the citys financial infrastructure and improving cross-border links.

In April the IMF reported that tokenization can simplify processes such as settlement and ownership transfer, reducing costs and increasing transparency. At the same time the report cautioned that fast adoption of tokenized systems may create issues around financial stability, governance, and regulatory oversight in global markets. These observations underscore the increasing importance of policy adjustments to keep pace with evolving financial technologies.