Australia must move faster on tokenization or risk losing business to overseas markets, the chair of the Australian Securities and Investments Commission has warned.
The comment came as global firms and some exchanges push ahead with tokenized securities and bonds.
Big banks are planning moves too — J.P. Morgan has signaled plans to fully tokenize some of its money market funds within two years. Those steps show that tokenized products are moving from pilot stages toward real market use.
Longo also pointed to a transition window: firms dealing with certain types of stablecoins and tokenized securities were given until June 2026 to meet licensing rules.
In a separate survey cited by ASIC, about half of market participants declined to engage with the regulator on tokenization issues, while roughly one-third provided detailed feedback — a gap the agency says it wants to close.
Australia’s private credit market has expanded rapidly over the past decade, growing by about 500%. The superannuation system now holds more than $4.3 trillion, a pool that outstrips public market liquidity.
Based on reports, Longo warned that if domestic rules and infrastructure lag, businesses and investors might prefer other jurisdictions with clearer frameworks and faster rollouts. He asked how long it would be before Australians “start to do all their trading elsewhere,” a line meant to underline the urgency.
ASIC plans to offer open doors for innovators facing regulatory barriers and to clarify how current laws apply to wrapped tokens, stablecoins and tokenized securities. The regulator says it will keep investor protection front and center while trying to reduce unnecessary friction for new products.
Stakeholders in the market have been given signals about timelines and expectations, and many industry players will watch whether the sandbox and guidance actually speed up product launches.
Featured image from Unsplash, chart from TradingView
