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

Australia must move faster on tokenization or risk losing business to overseas markets, the chair of the Australian Securities and Investments Commission has ￰0￱ to a speech delivered on November 5, ASIC Chair Joe Longo urged regulators, firms and investors to act now, saying the country must “seize the opportunity or be left behind.” The comment came as global firms and some exchanges push ahead with tokenized securities and ￰1￱ Tokenization Matters Tokenization breaks big assets into smaller pieces and can cut settlement times, which makes them easier to ￰2￱ on reports, some international platforms have already seen significant volumes: one exchange has recorded about $3.1 billion in tokenized bond issuances since ￰3￱ banks are planning moves too — ￰4￱ has signaled plans to fully tokenize some of its money market funds within two ￰5￱ steps show that tokenized products are moving from pilot stages toward real market ￰6￱ Push And Plans According to ASIC , the regulator will relaunch and strengthen its innovation hub and seek closer work with government on ￰7￱ have disclosed an Enhanced Regulatory Sandbox is under consideration to help fintechs and asset managers test tokenized ￰8￱ also pointed to a transition window: firms dealing with certain types of stablecoins and tokenized securities were given until June 2026 to meet licensing ￰9￱ a separate survey cited by ASIC, about half of market participants declined to engage with the regulator on tokenization issues, while roughly one-third provided detailed feedback — a gap the agency says it wants to ￰10￱ Structure And The Stakes Australia’s private credit market has expanded rapidly over the past decade, growing by about 500%.

The superannuation system now holds more than $4.3 trillion, a pool that outstrips public market ￰11￱ on reports, Longo warned that if domestic rules and infrastructure lag, businesses and investors might prefer other jurisdictions with clearer frameworks and faster ￰12￱ asked how long it would be before Australians “start to do all their trading elsewhere,” a line meant to underline the ￰13￱ Comes Next ASIC plans to offer open doors for innovators facing regulatory barriers and to clarify how current laws apply to wrapped tokens, stablecoins and tokenized ￰14￱ regulator says it will keep investor protection front and center while trying to reduce unnecessary friction for new ￰15￱ in the market have been given signals about timelines and expectations, and many industry players will watch whether the sandbox and guidance actually speed up product ￰16￱ image from Unsplash, chart from TradingView