ASIC: Australia Must Move Quickly on Tokenization or Risk Falling Behind
Tokenization will play a key role in the next stage of Australia’s financial market development, according to the country’s top financial regulator.
Joe Longo, Chair of the Australian Securities and Investments Commission (ASIC), said in a Wednesday speech that Australia must “seize the opportunity or be left behind,” as distributed ledger technology (DLT) like blockchain continues to reshape global capital markets.
Longo explained that tokenization could fundamentally transform capital markets by allowing assets such as bonds, stocks, or funds to be split into smaller digital units, enabling instant trading and settlement through blockchain networks.
However, he warned that Australia risks becoming “a land of missed opportunities” if it doesn’t keep up, as other nations push ahead.
For example, Switzerland’s digital securities exchange has recorded over USD 3.1 billion in tokenized bond issuances since 2021. Meanwhile, J.P. Morgan plans to fully tokenize its money market funds within the next two years, and Nasdaq is preparing to launch 24-hour trading for tokenized securities by late next year.
To accelerate innovation, Longo announced that ASIC will review and relaunch its “Innovation Hub,” focusing on ways the regulator can better support financial market innovation in Australia.
The revamped Innovation Hub will maintain an open-door policy for fintech and crypto innovators facing regulatory challenges. ASIC aims to collaborate on solutions, not just document problems, and will also support the government’s review of the Enhanced Regulatory Sandbox to strengthen Australia’s fintech and digital asset ecosystem.
This move builds on ASIC’s recent steps toward clearer crypto regulation. Last month, the regulator updated its digital asset guidance, clarifying that stablecoins, wrapped tokens, and tokenized securities are financial products that require licensing.
Companies have until June 2026 to comply with the new requirements.
Meanwhile, Australia’s Treasury has proposed new legislation that would require crypto exchanges and certain digital asset service providers to hold financial services licenses.
“Once, Australia was an early adopter of innovation in financial markets,” Longo said, recalling the country’s pioneering electronic trading systems. “Now, other nations are moving faster than us.”
