Australia Risks Being “Left Behind” as Tokenization Transforms Global Markets – ASIC
Australia’s monetary regulator has warned that the nation dangers falling behind as blockchain-driven tokenization reshapes international markets, urging swift motion to modernize laws and embrace innovation.
Speaking at the National Press Club in Canberra on November 5, Australian Securities and Investments Commission (ASIC) Chair Joe Longo stated tokenization, the method of turning real-world belongings into digital tokens, is remodeling capital markets worldwide.
He cautioned that until Australia adapts, it might develop into a “land of missed alternative.”
“Australia should innovate or stagnate. Seize the chance or be left behind,” Longo stated in his keynote handle.
Global Tokenization Surges Past $35.8B; ASIC Warns of Australian Inaction
Longo in contrast the approaching wave of tokenization to previous monetary know-how milestones, such as the introduction of digital buying and selling and the ASX’s CHESS system in 1994.
He stated distributed ledger know-how might “basically rework our capital markets,” with tokenization permitting on the spot settlement, fractional possession, and better entry for buyers.
“J.P. Morgan has instructed me their cash market funds will probably be totally tokenized inside two years,” he famous, including that Nasdaq and the Depository Trust & Clearing Corporation (DTCC) are additionally growing tokenized buying and selling and settlement platforms.
The remarks come amid a worldwide race to digitize conventional belongings. Switzerland’s SIX Digital Exchange has already processed over $3 billion in digital bond issuances, and the U.K. is trialing a digital securities sandbox by way of the Bank of England and Financial Conduct Authority.
In distinction, Australia’s tokenization efforts stay in early levels, with pilot packages like Project Acacia, led by the Reserve Bank and the Digital Finance Cooperative Research Centre, exploring tokenized debt markets.
Tokenization permits belongings such as actual property, authorities bonds, and personal credit score to be represented digitally on blockchains, bettering effectivity, transparency, and liquidity.
Globally, over $35.8 billion value of real-world belongings (RWAs) at the moment are tokenized on-chain, according to data from RWA.xyz.
The sector is dominated by personal credit score ($18.7 billion) and U.S. Treasury debt ($8.7 billion), reflecting institutional urge for food for tokenized fixed-income merchandise.
According to the 2025 Skynet RWA Security Report, the marketplace for tokenized real-world belongings (RWA) might increase to $16 trillion by 2030.
Tokenization’s development is being pushed by main monetary gamers, from BlackRock and J.P. Morgan to DBS Bank, who’re integrating blockchain infrastructure into conventional finance.
Can Australia Catch Up as the World Embraces Tokenization?
Longo’s concern is that whereas different nations are adapting regulatory frameworks to draw tokenized capital, Australia dangers being sidelined by inaction.
“Other nations are actively courting this capital,” he stated. “If we fail to decide on, the modifications in our markets might not be for the higher.”
He pointed to the declining variety of listed firms on the ASX and the rise of personal markets, warning that an imbalance between transparency and innovation might expose the financial system to dangers.
Australia’s personal credit score sector, now value over $200 billion, has grown 500% in a decade, however Longo famous it stays “untested beneath market stress.”
Longo additional outlined ASIC’s plan to relaunch its Innovation Hub to help fintech and market infrastructure experiments, alongside renewed cooperation with worldwide regulators.
ASIC has additionally joined Singapore’s Project Guardian to discover tokenized funds and digital cash settlement.
He known as for authorized and regulatory reform to help innovation whereas sustaining investor safety, arguing that “threat achieved properly is alternative.”
Additionally, Longo stated his current assembly with U.S. SEC Chair Paul Atkins made him notice Australia is competing with different nations to draw capital and safe a bigger share of the fast-growing tokenization market.
Longo concluded by urging collective motion throughout authorities, regulators, and the personal sector to construct fashionable monetary foundations.
He stated that if the Australian capital markets are to thrive into the long run, the time to behave is now, stating that the selection is to innovate or stagnate, to evolve or develop into extinct.
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