Catenaa, Saturday, November 15, 2025-Australia’s financial regulator is pressing the country to accelerate adoption of tokenization or risk losing ground to global markets.
Australian Securities and Investments Commission Chair Joe Longo said Wednesday that distributed ledger technology could reshape capital markets by dividing assets into smaller, tradable units and enabling instant settlement.
Longo warned that without swift action, Australia could become a “land of missed opportunity” as other nations advance. He cited Switzerland’s digital securities exchange, which has issued over $3.1 billion in tokenized bonds since 2021, and highlighted J.P. Morgan’s plan to fully tokenize its money market funds within two years.
Nasdaq has also proposed 24-hour tokenized securities trading by late 2026.
Longo announced plans to relaunch the ASIC Innovation Hub to support financial market innovation, offering guidance and collaboration for innovators navigating regulatory challenges. The regulator will work with the government to review the Enhanced Regulatory Sandbox to further boost the fintech sector.
The remarks follow ASIC’s recent guidance clarifying that stablecoins, wrapped tokens, and tokenized securities are considered financial products requiring licensing.
Firms have until June 2026 to comply. In parallel, Australia’s Treasury proposed draft legislation mandating licenses for crypto exchanges and certain service providers.
Longo emphasized that Australia, once an early adopter of market innovations, must now act decisively to maintain relevance in a rapidly evolving global financial landscape.
