The Hong Kong Monetary Authority (HKMA) has given local banks a score of 2.3 out of 10 for their readiness against quantum computing threats. This low average score was revealed in a dedicated white paper and the first Quantum Preparedness Index (QPI) published for the region’s banking sector.
An HKMA survey showed that roughly half of the monitored institutions have no formal post-quantum plans in place. In response, the HKMA urged banks to begin inventorying their systems, assessing risk levels, and planning security migrations well before quantum computers become commercially viable. The regulator set a target for all banks to reach a QPI score of 10, representing full readiness, by 2030.
What Are the Risks for Asset Tokenization?
This readiness assessment comes just as Hong Kong is accelerating the digitization of its financial services. Since 2023, the city has issued three tranches of tokenized green bonds worth HK$16.8 billion, equivalent to $2.1 billion.
The HKMA is also actively developing tokenized deposit systems and digital asset settlement rails through Project Ensemble. The push to adopt post-quantum security is an integral component of the Fintech 2030 strategy launched in 2025, which designates tokenization as one of Hong Kong’s four strategic pillars.
Without modern defenses, digital asset systems remain vulnerable to cyber threats. Quantum computers running Shor’s algorithm will possess the processing power to break RSA encryption and elliptic curve cryptography widely used across the banking sector today. If these core cryptographic foundations are compromised, attackers could decrypt sensitive data or forge digital signatures to unilaterally authorize transactions.
Who Has Started Preparing?
Despite the banking sector’s lagging scorecard, several institutions have taken initial steps. The HKMA noted that at least one bank has completed a proof of concept applying post-quantum cryptography to secure connectivity for its distributed ledger technology (DLT) systems.
Precautionary measures have also been implemented by HSBC. In 2024, the bank utilized quantum-resistant technology while transferring tokenized gold across inter-entity distributed ledger networks.
Building robust defenses requires more than just pilot programs. With the clock ticking toward 2030, institutions no longer have the luxury of architecting protections after attacks occur. The banking ecosystem must achieve resilience long before quantum capabilities fall into the wrong hands.
Via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
