Hong Kong prepares banks for quantum threats amid tokenization push
HKMA has launched a framework to gauge how prepared Hong Kong banks are for quantum-computing threats, alongside a white paper and the sector’s first Quantum Preparedness Index. The index scored the banking sector 2.3 out of 10, and about half of surveyed institutions reported no formal post-quantum plan. HKMA wants full readiness by 2030. The move comes as Hong Kong expands tokenized deposits, digital assets and blockchain-based settlement through initiatives such as Project Ensemble and tokenized bond issuance. Because these systems rely on cryptography, quantum computers could eventually break current RSA and elliptic-curve protections, risking encrypted data and transaction signatures. HKMA said banks should start inventories, risk assessments and migration planning now, since replacing cryptographic infrastructure can take years. The regulator also pointed to early examples of post-quantum testing in distributed-ledger connectivity and quantum-safe transfers of tokenized assets.
