ASIC Warns Australia to Speed Up Tokenization
ASIC Chair Joe Longo has warned that Australia risks ceding market share if it does not accelerate asset tokenization. He noted over $35.8 billion in real-world assets—led by private credit and U.S. Treasury debt—are already on-chain, and global platforms have issued more than $3.1 billion in tokenized bonds since 2021. Major institutions like J.P. Morgan intend to fully tokenize money market funds within two years.
To support tokenization, ASIC will relaunch its innovation hub, explore an Enhanced Regulatory Sandbox and collaborate with government on reform. Pilots such as Project Acacia and Singapore’s Project Guardian remain limited without clear rules. Firms issuing wrapped tokens, stablecoins and tokenized securities must secure licences by June 2026. Longo stressed that modernized regulation will reduce friction, safeguard investors and unlock efficiency gains from instant settlement and fractional ownership in Australia’s digital asset markets.
Bullish
ASIC’s push for accelerated tokenization and clearer digital asset rules is positive for the crypto market. In the short term, the move may drive higher trading volumes in tokenized securities and stablecoins as firms prepare for licensing deadlines and test sandbox environments. Instant settlement and fractional ownership features could attract new participants. Over the long term, streamlined regulations and infrastructure upgrades will encourage more institutions to issue tokenized real-world assets in Australia, deepening liquidity and supporting sustainable market growth.