Australia Risks Being “Left Behind” as Tokenization Transforms Global Markets – ASIC

Australia’s financial regulator has warned that the country risks falling behind as blockchain-driven tokenization reshapes global markets, urging swift action to modernize regulations and embrace ￰0￱ at the National Press Club in Canberra on November 5, Australian Securities and Investments Commission (ASIC) Chair Joe Longo said tokenization , the process of turning real-world assets into digital tokens, is transforming capital markets worldwide.) are also developing tokenized trading and settlement ￰1￱ remarks come amid a global race to digitize traditional assets. Switzerland’s SIX Digital Exchange has already processed over $3 billion in digital bond issuances, and the ￰2￱ trialing a digital securities sandbox through the Bank of England and Financial Conduct ￰3￱ contrast, Australia’s tokenization efforts remain in early stages, with pilot programs like Project Acacia , led by the Reserve Bank and the Digital Finance Cooperative Research Centre, exploring tokenized debt ￰4￱ allows assets such as real estate, government bonds, and private credit to be represented digitally on blockchains, improving efficiency, transparency, and liquidity.

Globally, over $35.8 billion worth of real-world assets (RWAs) are now tokenized on-chain, according to data from RWA. xyz.) and ￰5￱ debt ($8.7 billion), reflecting institutional appetite for tokenized fixed-income ￰6￱ to the 2025 Skynet RWA Security Report , the market for tokenized real-world assets (RWA) could expand to $16 trillion by 2030. Tokenization’s growth is being driven by major financial players, from BlackRock and ￰7￱ to DBS Bank, who are integrating blockchain infrastructure into traditional ￰8￱ Australia Catch Up as the World Embraces Tokenization? Longo’s concern is that while other nations are adapting regulatory frameworks to attract tokenized capital, Australia risks being sidelined by inaction.

“Other countries are actively courting this capital,” he said. “If we fail to choose, the changes in our markets may not be for the better.” He pointed to the declining number of listed companies on the ASX and the rise of private markets, warning that an imbalance between transparency and innovation could expose the economy to risks. Australia’s private credit sector, now worth over $200 billion, has grown 500% in a decade, but Longo noted it remains “untested under market stress.” Longo further outlined ASIC’s plan to relaunch its Innovation Hub to support fintech and market infrastructure experiments, alongside renewed cooperation with international ￰9￱ has also joined Singapore’s Project Guardian to explore tokenized funds and digital money ￰10￱ called for legal and regulatory reform to support innovation while maintaining investor protection, arguing that “risk done well is opportunity.” Additionally, Longo said his recent meeting with ￰11￱ Chair Paul Atkins made him realize Australia is competing with other nations to attract capital and secure a larger share of the fast-growing tokenization ￰12￱ concluded by urging collective action across government, regulators, and the private sector to build modern financial ￰13￱ said that if the Australian capital markets are to thrive into the future, the time to act is now, stating that the choice is to innovate or stagnate, to evolve or become extinct.