Australia’s Regulator Pushes Tokenization to Avoid Falling Behind

Joe Longo, the head of Australia’s primary market regulator, has positioned himself as a vocal advocate for technological transformation in the nation’s financial markets. His address to the National Press Club served as both a warning and a call to action, emphasizing that Australia’s capital markets face the real risk of being outpaced by other nations that are more aggressively adopting innovations like tokenization. Longo’s concern centers on Australia potentially becoming passive recipients of financial technology developed elsewhere rather than active participants and leaders in the space.

The Australian Securities and Investments Commission chair articulated a vision where Australia must move beyond cautious observation and into active implementation. His comments reflect a growing recognition among global regulators that blockchain technology and tokenization represent more than just speculative assets—they are foundational technologies that could redefine how capital markets operate. Longo’s stance marks a significant shift in regulatory posture, moving from defensive oversight to proactive encouragement of financial innovation.

The urgency behind Longo’s message is underscored by the rapidly expanding global tokenization market. According to the data cited in his address, over $35.8 billion worth of real-world assets are currently tokenized onchain, representing a substantial foundation for future growth. This figure encompasses various asset classes including real estate, commodities, and financial instruments that have been converted into digital tokens on blockchain networks.

Major consulting firms have projected dramatically different but universally optimistic growth trajectories for this emerging sector. Boston Consulting Group has presented the more aggressive forecast, estimating that tokenized real-world assets could reach $16 trillion by 2030. This represents nearly a 450-fold increase from current levels and would position tokenization as a transformative force in global finance. Meanwhile, McKinsey & Co offers a more conservative but still substantial projection of $2 trillion by the same timeframe, reflecting different assumptions about adoption rates and regulatory developments.

For Australia, the stakes extend beyond simply keeping pace with global trends. Longo’s warning about becoming the ‘land of missed opportunity’ speaks to broader economic consequences, including potential capital flight, reduced competitiveness in financial services, and diminished influence in shaping international standards. The Australian Securities and Investments Commission appears to recognize that early adoption could position Australia as a regional leader in digital finance rather than a follower.

The push for tokenization aligns with broader global movements toward digitizing traditional finance, but Australia faces unique challenges and opportunities. The country’s well-established regulatory framework and sophisticated financial markets provide a solid foundation for controlled innovation. However, the speed of implementation will be critical, as other jurisdictions including Singapore, Hong Kong, and the European Union are already advancing their own tokenization initiatives. Longo’s comments suggest that ASIC is prepared to take a more forward-leaning approach to regulation that balances innovation with investor protection.

The divergence between Boston Consulting Group’s $16 trillion projection and McKinsey’s $2 trillion estimate highlights the uncertainty surrounding how quickly tokenization will transform capital markets. What remains clear is that both projections represent massive growth from current levels, and Australia’s regulatory leadership under Joe Longo appears determined to ensure the country captures its share of this expanding market rather than watching from the sidelines.