Joe Longo, Chair of the Australian Securities and Investments Commission (ASIC), has issued a stark warning that Australia is at risk of falling behind in the global race to adopt tokenised assets, potentially becoming "the land of missed opportunity" if it fails to act. Longo emphasized that tokenisation—which involves converting traditional assets like real estate, bonds, or funds into digital tokens—could revolutionize financial markets by enabling faster settlements, greater transparency, and broader investor access.
Speaking at the National Press Club, Longo noted that while Australia was once an early adopter of innovations like electronic trading, other jurisdictions are now accelerating their tokenisation initiatives. He cited examples such as J.P. Morgan's plan to fully tokenize its money market funds within two years, allowing instant value transfers compared to days under current systems. Research indicates that tokenised real-world assets could reach trillions of dollars globally in the coming decade, highlighting the scale of the opportunity.
However, ASIC's recent tokenisation survey revealed limited industry engagement, with roughly half of market participants declining to participate or provide detailed feedback. Longo attributed this inertia to firms being "too comfortable with the status quo" and urged collaboration between government, regulators, and industry to establish clear frameworks. In response, ASIC is expanding its Innovation Hub to support fintechs and provide regulatory certainty.
Steve Vallas, CEO of Blockchain APAC, described Longo's remarks as a "wake-up call" for Australia, stressing that conviction must precede capital investment. Longo concluded that Australia faces a critical choice: innovate now to attract global investment and enhance market efficiency, or risk stagnation and capital flight to more proactive regions.
