Australia’s Financial Regulator Warns of Falling Behind in Tokenization Race
Australia risks becoming a laggard in the global tokenization wave unless it accelerates financial market innovation, according to Joe Longo, chair of the Australian Securities and Investments Commission (ASIC). Over $35.8 billion in real-world assets are already tokenized globally, with projections suggesting the market could balloon to between $2 trillion and $16 trillion by 2030.
JPMorgan’s plan to tokenize $730 billion in money market funds within two years underscores the institutional momentum behind asset digitization. Switzerland’s digital exchange has processed more than $3.1 billion in tokenized bonds since 2021, while Australia—despite early adoption—has failed to keep pace.
ASIC will relaunch its Innovation Hub to support fintech startups navigating regulatory frameworks for tokenized assets. "Innovate or stagnate" is the choice facing Australian markets, Longo warned during a National Press Club address.
