ASIC Chair Joe Longo Cautions Australia on Falling Behind in Tokenization
Joe Longo, the chair of ASIC, gave a at the National Press Club recently in which he warned that Australia might become “a land of missed opportunity” if it doesn’t rapidly implement asset tokenization and update its financial infrastructure.
The country used to be a leader in electronic trading innovation, but it could soon be forgotten as countries like , the UK, and the US rapidly tokenize bonds, securities, and money market instruments.
What Tokenization Means
Tokenization is the process of turning traditional assets like bonds, funds, or real estate into digital tokens that may be platformd rapidly, all over the world, and at cheaper rates.
This makes it easier for regular investors to get involved, makes the market more efficient, and promises quick settlements instead of the days-long waits that present systems require. Newcomers can challenge existing financial conventions thanks to distributed ledger technology, which makes Australia’s capital markets more open to everyone.
Global Momentum Shows the Risks for Australia
Larry Fink of BlackRock and other financial elites around the world think that tokenization will completely change how assets are traded. For example, has said it will tokenize $730 billion in money market funds over the next two years.
The SIX Digital platform in Switzerland has already issued more than $3.1 billion in digital bonds since 2021. The is also testing tokenized securities in regulated sandboxes.
Australia’s regulatory surveys show that many domestic businesses are unwilling to work with . Half of the respondents either didn’t meet with ASIC or didn’t react at all, and only a third supplied useful comments. This delay in private-sector action could push issuers and investors to global markets that move quicker.
The Regulator’s Call to Action
Longo said that the government, industry, and regulators need to work together to clarify how should function. ASIC is reviving its Innovation Hub to assist fintech and regtech businesses in understanding the rules and entering the market more rapidly.
The regulator has requested prompt investment in infrastructure and regulations, advising all parties involved not to let “conviction come second to capital treatment.”
Australia’s Choice: The Future
$4.3 trillion superannuation system and robust private markets make it a favorable location to leverage tokenization. However, if there are delays, it could result in outdated systems and loss of its leadership to more adaptable economies. Taking action now might keep Australia essential and put it at the top of the global tokenized economy.
