Home
Cryptocurrency
Cryptocurrency News
Banks in Hong Kong Brace for Quantum Risks During Tokenisation Expansion

Banks in Hong Kong Brace for Quantum Risks During Tokenisation Expansion

HKMA unveils framework to measure banks’ readiness for post-quantum cybersecurity risks.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 28 July 2026 18:56 IST

Banks in Hong Kong Brace for Quantum Risks During Tokenisation Expansion

Photo Credit: Unsplash/Hern Gong

HKMA introduces new benchmark to assess banks’ quantum security readiness

Click Here to Add Gadgets360 As A Trusted Source

Highlights

HKMA’s preparedness index scores banks just 2.3 out of 10
Half of surveyed firms lack post-quantum security strategies
Tokenisation growth drives focus on quantum-safe infrastructure

The HK Monetary Authority (HKMA) is developing an assessment framework to determine banks' preparedness against quantum computing attacks amid increasing usage of tokenised deposits, digital assets, and blockchain settlement within Hong Kong. HKMA rolled out a white paper and also a Quantum Preparedness Index (QPI), which is the sector's first index on the same topic. The QPI scored the industry a total preparedness rating of 2.3/10, while the white paper indicated that roughly 50 percent of those surveyed lacked any post-quantum plans.\\

HKMA Targets Full Quantum Readiness Across Banking Sector by 2030

According to the HKMA, its goal is to reach full sector preparedness in the form of reaching a score of 10 on the QPI scale by 2030. This development occurs alongside the ongoing efforts in Hong Kong to move traditional finance activities onto distributed ledgers. According to official government data, in Hong Kong, tokenised green bonds worth around HK$16.8 billion ($2.1 billion) have been offered in three rounds since 2023, whereas the HKMA is working on tokenised deposits and digital assets' settlement via Project Ensemble.

Cryptocurrency Discussion

Explore More...

The HKMA white paper suggested that applications and networks of distributed ledgers are dependent on cryptographic protocols for their fundamental purposes, and would be severely affected in case of any security breach. Also, according to the HKMA white paper, one of the surveyed organisations had developed a concept proof with post-quantum cryptography for connectivity in distributed ledgers, while mentioning HSBC's quantum-safe technology implementation in 2024 for transferring tokenised gold across distributed ledgers.

Apple Hit With Lawsuit Over Alleged Bitcoin Wallet App Losses Worth $1.8 Million

Earlier in 2025, the HKMA had unveiled its Fintech 2030 strategy, a comprehensive five-year plan to drive innovation, strengthen resilience, and advance real-world asset (RWA) tokenisation across the financial system. The strategy is structured around four core pillars: data, artificial intelligence, resilience and tokenisation (DART), which together aim to modernise the city's financial infrastructure and enhance cross-border connectivity.

In April. The IMF also said in a report that tokenisation can make processes such as settlement and ownership transfer easier, lowering costs and making things clearer. However, it also warned that the rapid adoption of tokenised systems could pose challenges related to financial stability, governance, and regulatory oversight across global markets. The findings highlight the growing need for policymakers to adapt to advancing financial technologies.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Cryptocurrency, Hong Kong, HKMA

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More