Australia Faces Make-Or-Break Moment As Tokenization Sweeps Global Markets: ASIC Chair

Australia risks losing its competitive edge in financial markets unless it accelerates the adoption of tokenization, warns Joe Longo, chair of the Australian Securities and Investments Commission (ASIC). In a November 5 speech, Longo emphasized the urgency for regulators, firms, and investors to act, framing the moment as a critical juncture: "seize the opportunity or be left behind."

Tokenization, which fractionalizes large assets into tradable digital units, is gaining traction globally. Platforms have already processed $3.1 billion in tokenized bond issuances since 2021, with institutions like J.P. Morgan planning to tokenize money market funds within two years. The technology promises faster settlements and broader accessibility, transitioning from pilot phases to mainstream use.

ASIC plans to revitalize its innovation hub and collaborate with policymakers on regulatory reforms. An Enhanced Regulatory Sandbox is under consideration to facilitate testing of tokenized products by fintechs and asset managers. Longo highlighted stablecoins and tokenized securities as immediate priorities, signaling a narrowing window for Australia to align with global trends.