Australian Securities and Investments Commission (ASIC) chairman Joe Longo warned that Australia risked being “left behind” if it did not keep pace with the transformation, saying tokenization would play a key role in the future of the country's financial markets.
ASIC chairman: 'Australia must adapt quickly to tokenisation or be left behind'
Longo emphasized that distributed ledger technology (DLT) is transforming capital markets around the world, and that tokenization, which separates assets into smaller tradable units and allows for instantaneous exchange, could trigger a structural revolution in capital markets.
But Longo cautioned that other countries are also making rapid progress: “Switzerland's digital stock exchange has issued more than $3.1 billion in tokenized bonds since 2021. JPMorgan plans to fully tokenize its money market funds within the next two years. Nasdaq aims to launch 24-hour tokenized securities trading by 2026.”
In response to these developments, Longo announced that ASIC is relaunching its Innovation Hub initiative. The hub supports financial innovation and provides guidance for entrepreneurs facing regulatory hurdles.
ASIC has also recently updated its guidance on digital assets, classifying stablecoins, wrapped tokens and tokenized securities as licensable financial products. Businesses have until June 2026 to comply.
*This is not investment advice.
