What happened?
ASIC Chair Joe Longo warned that blockchain-driven tokenization is reshaping global capital markets and that Australia risks being “left behind” if it doesn’t modernize rules and infrastructure. He urged faster regulatory reform, relaunching ASIC’s Innovation Hub, and closer international cooperation to support pilot programs and tokenized markets. Longo highlighted that major global players are already moving quickly on tokenization, putting pressure on Australia to act.
Who does this affect?
This affects investors (both institutional and retail) who could gain access to more liquid, fractionalized assets and faster settlement. It also matters for banks, exchanges, fintechs, custodians, and the ASX, which may lose market share if they don’t adapt. Regulators and policymakers are impacted too, since they need to balance innovation with investor protection to keep capital onshore.
Why does this matter?
Tokenization can dramatically lower costs, speed up settlement, and expand liquidity, potentially unlocking trillions in real-world assets and changing capital allocation globally. If Australia delays, it risks losing talent, listings, and investment flows to jurisdictions that build token-friendly infrastructure and rules. That shift could reshape market structure, valuations, and competitiveness for Australian financial markets.