A cascaded modulator system (20) and method for a QKD system (10) is disclosed. The modulator system includes to modulators (M1 and M2) optically coupled in series. A parallel shift register (50) generates two-bit (i.e., binary) voltages (L1, L2). These voltage levels are adjusted by respective voltage adjusters (30-1 and 30-2) to generate weighted voltages (V1, V2) that drive the respective modulators. An electronic delay element (40) that matches the optical delay between modulators provides for modulator timing (gating). The net modulation (M.sub.NET) imparted to an optical signal (60) is the sum of the modulations imparted by the modulators. The modulator system provides four possible net modulations based only on binary voltage signals. This makes for faster and more efficient modulation in QKD systems and related optical systems when compared to using quad-level voltage signals to drive a single modulator.