Australia Tokenisation Risk: ASIC Warns of Missed Opportunities

Australia may be falling behind in the global tokenisation race. Joe Longo, Chair of the Australian Securities and Investments Commission (ASIC), recently sent a warning. That the country risks a “missed opportunity” if it does not embrace tokenised assets. He explained that tokenisation could completely change how financial markets operate.

🇦🇺 LATEST: Australia risks "missed opportunity" by shirking tokenization, warns ASIC Chair Joe Longo.

Is Australia falling behind the tokenization race? 👇 pic.twitter.com/UWH36Uwy8E

— Cointelegraph (@Cointelegraph) November 7, 2025

Basically, tokenisation allows traditional assets such as real estate, bonds or funds to be divided into smaller digital tokens. These tokens trade more easily, settle faster and can be accessed by a wider range of investors. Longo stressed that countries that move quickly to adopt these innovations will have a clear competitive advantage.

The Promise of Tokenised Assets

Tokenised assets offer many benefits. First, they open investment opportunities to more people, allowing ordinary investors to access markets previously limited to institutions. Second, they improve efficiency because settlements happen faster and trading becomes more transparent.

Longo highlighted research estimating that tokenised real-world assets could reach trillions of dollars globally in the coming decade. Furthermore, major financial institutions are preparing to launch tokenised funds, showing that tokenisation is not a distant possibility, but is already underway.

For Australia, embracing tokenisation could help attract global investment, enhance market efficiency and position the country as a leader in financial innovation.

Why Australia Could Fall Behind

Despite these advantages, Longo warned that Australia is at risk of lagging. In the past, the country led in electronic trading innovations. However, other nations are now moving faster with tokenisation initiatives.

Some Australian firms have hesitated to engage with regulators about tokenisation, providing only limited feedback. Longo suggested that without momentum, innovation may stall. He also emphasised that regulatory frameworks must be in place to support tokenised markets. Without clear rules, investors might prefer jurisdictions that offer certainty and speed.

ASIC’s Approach to Encourage Innovation

To address these challenges, ASIC plans to expand its Innovation Hub. The initiative aims to support fintechs and innovators with an open-door policy, helping them navigate regulatory requirements. Longo also called for collaboration between government, industry and regulators to ensure Australia remains competitive in the global market.

He stressed that acting now is key. By preparing infrastructure, rules and support systems, Australia’s tokenisation risk can be prevented.

Why Australia Can’t Wait

Australia faces a choice, which is to adapt and innovate, or fall behind. Tokenisation is growing worldwide, and other countries are moving quickly. Longo’s message is clear, that Australia must embrace these changes to maintain its position in global finance. For investors, startups and policymakers, the opportunity is now. Acting decisively could prevent Australia’s tokenisation risk and set it as a leader in the tokenised economy.