Hong Kong Prepares Banks for the Quantum Era and AI Agents

The Hong Kong Monetary Authority (HKMA) announced four initiatives in the areas of post-quantum cryptography, agent AI, token issuance, and cross-border payments. The projects were presented during Hong Kong FinTech Week 2026; they advance the Fintech 2030 strategy, which was introduced last year.

Preparing for the Post-Quantum Era

HKMA released the Post-Quantum Cryptography (PQC Toolkit), which will help banks transition to post-quantum cryptography. “Quantum computing in the future may threaten widely used encryption that protects customer data and transactions,” the press release states. The initiative continues the work started in July when HKMA introduced the first Quantum Preparedness Index (QPI) for the banking sector, which scored only 2.3 out of 10. According to the regulator, 32% of surveyed banks have not yet begun preparations, and about half did not have a formal plan for transitioning to post-quantum protection. HKMA aims to achieve a readiness score of 10 by 2030.

The PQC Toolkit includes a structured methodology and practical tools for financial organizations to transition to new cryptographic standards. The toolkit is designed to help banks prioritize, plan migration, and enhance cryptographic agility—the ability to adapt and update algorithms as standards evolve. The toolkit will be refined based on practical application, testing, and industry feedback.

Regulating AI Agents

The second initiative—Project SAGE (Securing Agentic Finance with Governance and Enablement)—focuses on the application and regulation of AI agents in finance. HKMA has formed a cross-industry expert group and published a discussion paper on supervisory requirements for agent AI in banks. The regulator proposes discussing governance models for such systems, responsibility distribution, and the possibility of creating a unified registry of trusted AI agents. Approaches mentioned include Know Your Agent (KYA)—a mechanism for identifying and verifying the credentials of autonomous software assistants.

24/7 Settlements and Payments

HKMA has moved the Ensemble TX project to a new phase—24/7 settlements with real funds in tokenized deposits. The regulator also completed test trades on the secondary market with tokenized Exchange Fund bills; the next phase involves trials with regulated stablecoins. Additionally, by the end of 2026, the Faster Payment System (FPS) is expected to connect to UnionPay International. This will gradually enable QR code payments at over 100 million retail locations in Hong Kong, mainland China, and more than 40 overseas markets.