Tokenization will become a central element of the next stage of development of the Australian financial market, warns ASIC, the country’s highest-ranking financial regulator. Joe Longo, chairman of the Australian Securities and Investments Commission (ASIC), doesn’t mince words: Australia must “seize the opportunity or be left behind” as distributed ledger technology transforms capital markets around the world.
Tokenization will fundamentally change everything
Longo, in Wednesday’s speech, stressed that tokenization “has the potential to fundamentally transform our capital markets” by dividing assets into smaller, tradable units and enabling immediate settlement of transactions. Sounds good, right? The problem is that others are already doing it, and on a large scale.
The head of ASIC warns – The world is not waiting for Australia
The Swiss digital stock exchange has issued tokenized bonds worth more than USD 3.1 billion since 2021. JP Morgan plans to fully tokenize its money market funds within two years. Nasdaq has proposed launching 24-hour trading in tokenized securities at the end of next year.
“Australia was once an early pioneer of market innovation,” Longo noted, mentioning electronic trading systems. “Now other countries are ahead of us.”
ASIC springs into action
Longo announced the review and relaunch of the ASIC Innovation Hub, focusing on finding ways to support innovation in the financial market. The revitalized Hub is intended to maintain an open-door policy for innovators struggling with regulatory obstacles. ASIC promises to collaborate on solutions, not just catalog problems.
Last month, the regulator updated its guidance on digital assets, clarifying that stablecoins, wrapped tokens and tokenized securities are financial products that require a license. Companies have until June 2026 to comply with the requirements. The Australian Treasury has also proposed draft legislation requiring cryptocurrency exchanges and certain cryptocurrency service providers to hold financial services licenses.
Australia is a large cryptocurrency market, especially given its proximity to the huge Asian market. Therefore, it is surprising that ASIC, on the one hand, is pushing for innovation, tokenization and implementation of digital assets, and on the other hand, the Australian government is increasingly effectively eliminating bitcoin machines.
