In a keynote speech at the National Press Club in Canberra on November 5, 2025, Australian Securities and Investments Commission (ASIC) Chair Joe Longo delivered a decisive message: “Australia must innovate or stagnate. Seize the opportunity or be left behind.”
Speaking under the theme “Open for opportunity: Taking charge of the future of our financial markets,” Longo emphasized that technological change, particularly tokenization, will define the next decade of financial markets. He said the rapid growth of private capital and emerging digital infrastructure demands immediate regulatory and institutional adaptation.
“Our markets need to change with the world, not simply respond to it,” Longo said, noting that ASIC wants to be “a backer, not a blocker of innovation.”
The rise of private capital and shifting market dynamics
Longo’s remarks underscored the dramatic transition that Australia’s capital markets have undergone in the past decade. The private credit sector has seen explosive growth, expanding by 500% over ten years to more than $200 billion. Meanwhile, public markets have become more concentrated, with fewer listed companies dominating overall capitalisation on the ASX.
While Longo praised the “fundamental good” that private market expansion brings, offering new avenues for funding and diversification, he warned that the shift also introduces new risks. Lower transparency, limited disclosure obligations, and a lack of liquidity tests could pose systemic challenges in times of financial stress.
Tokenization emerges as a key driver of change
A major focus of Longo’s address was tokenization, the process of representing assets on distributed ledger technology (DLT). He described how this innovation could “fundamentally transform our capital markets” by making assets tradable in smaller and more accessible units.
“Historically, investing in certain asset classes like private equity and fixed income was reserved for institutional players or high-net-worth individuals,” Longo said. “Tokenisation changes this by making it easier for assets to be broken into smaller, more affordable units, and traded quickly and securely on a global scale.”
The global shift is already well underway. Longo cited that J.P. Morgan plans to fully tokenise its money market funds within two years, enabling instant settlement, while Nasdaq has proposed launching 24-hour tokenized securities trading by the end of next year. Switzerland’s SIX Digital Exchange has already surpassed $3.1 billion USD in tokenized bond issuances since 2021.
A warning against becoming “the land of missed opportunity”
Despite Australia’s historical record of innovation, from pioneering electronic trading to the 2018 “bond-i” blockchain bond, Longo argued that other countries are now forging ahead.
“Once, Australia was one of the early adopters of innovation in markets,” he said. “Now, other countries are outpacing us.”
He cautioned that without action, Australia risks becoming “the land of missed opportunity,” emphasizing that “if that attitude doesn’t change, Australians may start to do all their trading elsewhere.”
ASIC’s Innovation Hub to be relaunched
To support responsible innovation, Longo announced the relaunch of the ASIC Innovation Hub, originally established to assist fintech and regtech startups.
“So today I can announce that we will review and relaunch the ASIC Innovation Hub, with a focus on seeking out ways ASIC can support financial market innovations in Australia,” Longo said.
The updated Hub will maintain an open-door policy, providing regulatory guidance for new market entrants and encouraging collaboration with government, academia, and industry leaders. ASIC will also contribute to broader initiatives such as the Reserve Bank of Australia’s Project Acacia, a pilot for tokenised debt markets, and Singapore’s Project Guardian, which explores tokenised funds settled in central bank money.
Strengthening the regulatory framework
Longo stressed that regulation must evolve alongside technological and structural innovation. ASIC recently released updated digital asset guidelines, clarifying that tokenized securities, stablecoins, and wrapped tokens are classified as financial products requiring licensing. Companies have until June 2026 to comply.
In parallel, the Australian Treasury has proposed legislation mandating that crypto exchanges and relevant service providers hold financial services licenses, laying the groundwork for a clearer regulatory perimeter.
A call to seize the moment
Longo closed his address with a reflection on opportunity and legacy:
“If we want our capital markets to thrive into the future, the time to act is now.”
Drawing from his own family’s immigrant story, he reminded Australians that, like his parents’ decision to build a future in a new country, bold choices must be made now for the benefit of future generations.
“To choose our future, before it is determined for us,” he concluded.
With global competition intensifying and digital transformation accelerating, Longo’s challenge was unmistakable: Australia must embrace tokenization and market modernization, or risk watching its financial relevance fade.
Gunel Ismayilova
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