Australian Securities and Investments Commission (ASIC) Chairman Joe Longo has warned that Australia risks being “left behind” if it doesn’t keep pace with this transformation, stating that tokenization will play a critical role in the future of the country’s financial markets.
Longo emphasized that distributed ledger technology (DLT) is transforming capital markets worldwide, and tokenization, which separates assets into smaller, tradable units that enable instantaneous exchange, could trigger a structural revolution in capital markets, he said.
Global Advancements in Tokenization
However, Longo cautioned that other countries are rapidly advancing. He highlighted several key developments: Switzerland’s digital securities exchange has issued over $3.1 billion in tokenized bonds since 2021. JP Morgan plans to fully tokenize its money market funds within the next two years. Nasdaq aims to launch 24-hour tokenized securities trading by 2026.
ASIC's Response and Future Initiatives
In response to these developments, Longo announced that ASIC will relaunch its Innovation Hub initiative. This hub will support financial innovation and provide guidance to entrepreneurs facing regulatory hurdles.
ASIC also recently updated its guidance on digital assets, classifying stablecoins, wrapped tokens, and tokenized securities as financial products requiring a license. Companies have until June 2026 to comply.