Australia’s Crypto Crossroads: ASIC Chair Warns of Do-or-Die Moment as Tokenization Dominates Global Finance

Tokenization isn't coming—it's already rewriting the rules. And Australia? It's playing catch-up.

The ASIC chair just dropped a truth bomb: adapt now or get left behind as asset tokenization eats traditional markets. No sugarcoating—just the cold, hard reality of 2025's financial arms race.

Meanwhile, Wall Street's old guard still thinks 'blockchain' is a yoga term. Good luck with that.

Why Tokenization Matters

Tokenization breaks big assets into smaller pieces and can cut settlement times, which makes them easier to trade. Based on reports, some international platforms have already seen significant volumes: one exchange has recorded about $3.1 billion in tokenized bond issuances since 2021.

Big banks are planning moves too — J.P. Morgan has signaled plans to fully tokenize some of its money market funds within two years. Those steps show that tokenized products are moving from pilot stages toward real market use.

Regulatory Push And Plans

According to ASIC, the regulator will relaunch and strengthen its innovation hub and seek closer work with government on reforms. Reports have disclosed an Enhanced Regulatory Sandbox is under consideration to help fintechs and asset managers test tokenized products.

Longo also pointed to a transition window: firms dealing with certain types of stablecoins and tokenized securities were given until June 2026 to meet licensing rules.

In 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 close.

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 liquidity.

Based on reports, Longo warned that if domestic rules and infrastructure lag, businesses and investors might prefer other jurisdictions with clearer frameworks and faster rollouts. He asked how long it WOULD be before Australians “start to do all their trading elsewhere,” a line meant to underline the urgency.

ASIC plans to offer open doors for innovators facing regulatory barriers and to clarify how current laws apply to wrapped tokens, stablecoins and tokenized securities. The regulator says it will keep investor protection front and center while trying to reduce unnecessary friction for new products.

Stakeholders 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 launches.

Featured image from Unsplash, chart from TradingView