Australia Risks Falling Behind in Global Tokenization Race, ASIC Chair Warns

Australia faces the risk of lagging in the global adoption of tokenized assets, according to Joe Longo, Chairman of the Australian Securities and Investments Commission (ASIC). Longo emphasized that tokenization could revolutionize capital markets by enabling fractional ownership and faster settlement of traditional assets like bonds, real estate, and funds. "Nations that embrace this technology early will gain a competitive edge," he stated.

Despite Australia's pioneering role in financial innovation—such as the 2018 issuance of the World Bank's first tokenized bond, "bond-i"—Longo noted that countries like Switzerland are now leading the charge. The SIX Digital Exchange, operated by Switzerland's equivalent of the ASX, began issuing digital bonds in 2021, underscoring the urgency for Australia to act.

ASIC has revamped its Innovation Hub to accelerate tokenization efforts, but Longo warned that hesitation could cost the nation significant investment opportunities and financial innovation.