TLDR
- ASIC Chair Joe Longo warned Australia risks falling behind other countries in tokenization if it doesn’t act quickly on financial market innovation
- Over $35.8 billion in real-world assets are currently tokenized, with projections reaching between $2-16 trillion by 2030
- JPMorgan plans to tokenize its money market funds worth $730 billion within two years
- ASIC will relaunch its Innovation Hub to help fintech startups navigate regulations and support tokenization efforts
- Switzerland’s digital exchange has processed over $3.1 billion in tokenized bonds since 2021, while Australia has fallen behind despite early adoption
Australia’s top financial regulator issued a warning this week that the country must act quickly on tokenization or risk being left behind in global capital markets. Joe Longo, the chair of the Australian Securities and Investments Commission, made the comments during a speech at the National Press Club on Wednesday.
🇦🇺 LATEST: Australia risks a “missed opportunity” by shirking tokenization, warns ASIC Chair Joe Longo.
He cautions that delaying adoption could leave Australia behind in the global financial transformation. 🌏💱
Is Australia falling behind the tokenization race? 👇… pic.twitter.com/uG3DSUUu4H
— Markri (@markry99) November 7, 2025
Longo said Australia faces a choice to “innovate or stagnate” as other countries move forward with blockchain technology. He warned that without action, Australia could become the “land of missed opportunity.”
The regulator pointed to current data showing $35.8 billion worth of real-world assets are already tokenized on blockchain networks. Boston Consulting Group estimates this figure could reach $16 trillion by 2030. McKinsey & Company has a more conservative projection of $2 trillion.
Longo highlighted that Australia was once a leader in financial market innovation. The country pioneered electronic trading systems with CHESS, its securities settlement system. Sydney also issued the first tokenized bond in 2018.
However, other nations have now overtaken Australia in this space. Switzerland’s digital securities exchange has processed over $3.1 billion in tokenized bond issuances since 2021. Nasdaq has proposed launching 24-hour tokenized securities trading by late next year.
JPMorgan’s Tokenization Plans
The ASIC chair mentioned recent discussions with JPMorgan staff who revealed plans to tokenize their money market funds within two years. Four of JPMorgan’s largest money market funds hold a combined $730 billion in assets.
Longo met with US Securities and Exchange Commission Chair Paul Atkins last month. That meeting made him realize countries are competing to attract capital in the emerging tokenization market.
ASIC’s Response Strategy
ASIC announced it will relaunch its Innovation Hub to support financial market innovation. The hub will maintain an open-door policy for innovators facing regulatory challenges. ASIC said it will work with companies on solutions rather than just identifying problems.
The regulator recently updated its guidance on digital assets last month. The new rules clarify that stablecoins, wrapped tokens, and tokenized securities are financial products requiring licensing. Firms have until June 2026 to comply with these requirements.
Longo said tokenization could break assets into smaller tradable units and enable instant settlement. This technology would allow more traders to access markets traditionally limited to institutional investors and wealthy individuals.
Australia’s Treasury also proposed draft legislation last month requiring crypto exchanges and service providers to hold financial services licenses. ASIC will support the government’s review of the Enhanced Regulatory Sandbox to boost the fintech sector.
