Australia Risks Falling Behind Without Embracing Tokenization, Says ASIC Chair

Australia financial markets risk losing their competitive edge unless the nation accelerates its adoption of emerging technologies like tokenization, warned the head of the Australian Securities and Investments Commission (ASIC), Joe Longo. Speaking at the National Press Club on Wednesday, Longo urged policymakers and industry leaders to act swiftly or risk the country becoming “the land of missed opportunity.”

“As other countries adapt and innovate, there’s a real risk Australia could become passive recipients of developments overseas,” Longo said. “The choice is innovate or stagnate — to evolve or become extinct.”

Tokenization is already reshaping global capital markets. According to Boston Consulting Group, over $35.8 billion worth of assets have been tokenized onchain, a figure projected to reach as high as $16 trillion by 2030. McKinsey & Co. offers a more conservative estimate of $2 trillion, but both forecasts point to rapid growth ahead.

Other Nations Surging Ahead in Market Innovation

Longo acknowledged that Australia was once at the forefront of financial technology with innovations like the Australian Securities Exchange’s Clearing House Electronic Subregister System (CHESS). However, he cautioned that momentum has since slowed, with other nations now leading the charge.

“Distributed ledger technology that facilitates asset tokenization could fundamentally transform our capital markets, in the same way as the introduction of CHESS once did,” he said. Longo also revealed that in recent discussions with U.S. regulators, including former SEC Chair Paul Atkins, it became clear that nations are now competing to attract global capital and secure a greater share of the fast-emerging tokenization market.

Global institutions are already moving quickly. Market regulators in the United States have discussed the potential for 24/7 trading across certain asset classes. Financial leaders like BlackRock CEO Larry Fink have championed tokenization as a way to modernize traditional assets, including stocks, bonds, and money market funds.

Australia ASIC Pledges Greater Support for Innovation

To keep pace, ASIC plans to take a more active role in encouraging innovation. Longo announced that the regulator will relaunch its Innovation Hub to help fintech startups navigate complex regulatory requirements and foster responsible digital asset development.

The announcement follows ASIC’s recent update on balancing digital innovation with investor protection. Longo highlighted that major institutions are already taking bold steps, citing JPMorgan’s plans to tokenize up to $730 billion in assets by 2028.

He emphasized that tokenizing such large asset classes could open financial markets to a broader range of investors, breaking down barriers that have traditionally favored institutions and high-net-worth individuals. “The transformation is already underway,” Longo said, “and Australia must decide whether to lead or be left behind.”