Hong Kong Regulator Introduces Quantum Readiness Index for Banks as Tokenization Expands

Hong Kong’s financial regulator has introduced a formal framework to assess banks’ readiness for threats posed by quantum computing, as the city expands tokenized assets and blockchain-based payment infrastructure.

Cointelegraph reported on July 27 that the Hong Kong Monetary Authority launched the industry’s first Quantum Preparedness Index, or QPI, alongside a white paper on quantum readiness. In the first assessment, Hong Kong’s banking sector scored 2.3 out of 10. About half of the institutions surveyed lacked a formal response plan for quantum threats. The HKMA is targeting a perfect QPI score of 10 by 2030 to bring the entire sector to full readiness.

The move comes as Hong Kong accelerates its shift toward distributed ledger-based financial activity. Since 2023, the Hong Kong government has issued a combined HK$16.8 billion, or about $2.1 billion, of tokenized green bonds across three offerings. The HKMA is also building tokenized deposit and digital-asset settlement infrastructure through Project Ensemble.

The white paper said distributed ledger applications and payment networks rely on cryptography for core functions, and warned that serious disruption could follow if those protections fail. A quantum computer capable of running Shor’s algorithm at scale could break RSA and elliptic curve cryptography, which are widely used across the current financial system. That could allow attackers to decrypt protected data or forge digital signatures used to authorize transactions. Because replacing cryptographic systems could take years, the HKMA urged banks to begin cataloging assets, assessing risks and drafting migration plans before quantum computing becomes practical.

Hong Kong’s tokenized-asset market is growing rapidly. Financial Secretary Paul Chan said in a speech in February that, by the end of 2025, digital assets under custody in Hong Kong’s banking sector had exceeded HK$14 billion, or about $1.8 billion, up about 180% from a year earlier. Outstanding tokenized deposits reached HK$29 billion, or about $3.7 billion.

In its Fintech 2030 strategy released in 2025, the HKMA named tokenization as one of four core priorities. The authority plans to accelerate tokenization of real-world assets, make tokenized government bond issuance routine and explore tokenized Exchange Fund bills and notes. It also plans to use the digital Hong Kong dollar, or e-HKD, tokenized deposits and regulated stablecoins as blockchain-based payment instruments.