Australia Risks Being Left Behind in Tokenization Race, Warns Top Regulator

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Australia’s regulator warns the nation may fall behind in tokenization as global markets adopt blockchain-based RWAs.

Australia, once the shining beacon of financial innovation, is now facing an existential threat – at least according to Joe Longo, the Chair of the Australian Securities and Investments Commission (ASIC). Apparently, if Australia doesn’t get its act together and jump on the tokenization bandwagon, it could soon find itself scrambling to catch up.

Longo’s warning is crystal clear: Australia must innovate or stagnate. In a speech that sent shivers down the spine of anyone who knows what a blockchain is, he compared the situation to the introduction of electronic settlement systems in the Australian Securities Exchange decades ago – an event that modernized trading. Tokenization, he says, has the same potential.

The Tokenization Revolution: Ready or Not?

At the National Press Club, Longo warned that tokenization is not just a trend, it’s a seismic shift that could change everything. Real-world assets – from bonds to real estate – are being converted into digital tokens and traded on blockchains. And this isn’t just a pipe dream. Over $35 billion worth of real-world assets have already been tokenized on blockchain networks. And according to Boston Consulting Group, that number could hit $16 trillion by 2030. Yes, trillion. This is no small matter.

JOE LONGO WARNS: AUSTRALIA RISKS MISSING OUT ON TOKENIZATION!

ASIC Chair Joe Longo says Australia faces a major “missed opportunity” by hesitating on tokenization. Meanwhile, other countries are FOMO-ing into tokenization and leaving Australia in the dust.

– CryptosRus (@CryptosR_Us)

Let’s break this down: tokenization is basically taking traditional assets and putting them on a blockchain, turning them into digital tokens that can be traded like cryptocurrency. So, if you thought your real estate investments were safe, think again. The blockchain is coming for them.

Global Competitors are Zooming Ahead

While Australia dithers, other countries are already blazing ahead. The United States, Singapore, and Hong Kong have all launched large-scale pilots involving tokenized funds and securities. Meanwhile, Singapore’s Monetary Authority is busy testing tokenized deposits and foreign exchange settlements. Oh, and Hong Kong? They’re out there issuing tokenized green bonds like it’s just another Tuesday. The US, not to be outdone, has BlackRock launching tokenized liquidity funds and JPMorgan planning to tokenize over $700 billion in money market funds by 2028. Yeah, no big deal.

The truth is, these countries are moving fast, while Australia’s momentum is… well, sluggish, to put it kindly. Without a bold strategy, Australia could lose both innovation and investment to markets that are actually getting things done.

Australia’s Early Lead Slips Away

Australia wasn’t always the tortoise in this race. Back in 2018, Sydney became home to the world’s first tokenized bond. The Reserve Bank even got involved, testing tokenized settlements as part of its central bank digital currency pilot in 2023. And major Australian banks like ANZ and NAB launched stablecoins for institutional use. But now, things seem to have slowed down.

Longo isn’t shy about pointing out that while Australia was once a leader in fintech, its progress has slowed. Other countries are moving faster, and if Australia doesn’t catch up soon, it risks falling behind. According to Longo, this is a race to attract global capital, and the country can’t afford to dawdle.

“Distributed ledger technology that enables tokenization could transform our capital markets,” he said.

ASIC’s Plan: Innovation without Chaos

So what’s ASIC’s game plan? To relaunch its Innovation Hub, a program designed to help fintech startups understand the labyrinth of financial regulations. Longo stressed that encouraging innovation doesn’t mean abandoning investor protection. It’s about creating a system that can keep pace with global standards. After all, you can’t just go wild with tokens and hope for the best, right?

To make sure the industry stays safe and sound, ASIC recently updated its digital asset guidance. The goal: a balance between innovation and investor protection. The hope is that these moves will lay the groundwork for an environment where tokenized products can be traded under clear, transparent rules. Now that’s a concept!

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2025-11-07 17:40