Summary
- The chair of the Australian Securities and Investments Commission emphasized that if the tokenization strategy is not hurried, the domestic capital market could fall behind.
- He noted that major global financial institutions, including those in Switzerland, JPMorgan, and Nasdaq, are already pursuing projects related to tokenization.
- ASIC said it plans to actively support innovation in digital assets and the fintech industry through revamping the Innovation Hub and reviewing the Enhanced Regulatory Sandbox.
The Australian Securities and Investments Commission (ASIC) emphasized that it must hasten a response strategy to tokenization to secure the competitiveness of its domestic capital market in digital assets.
On the 7th (local time), according to The Block, Joe Longo, chair of the Australian Securities and Investments Commission, said, "Tokenization has the potential to fundamentally change capital markets" and "Australia could fall behind if it does not seize this opportunity now." He added, "Tokenization can split assets into smaller units and completely revolutionize the structure of capital markets."
He elaborated, "The Swiss digital securities exchange has issued tokenized bonds totaling $3.1 billion since 2021, JPMorgan plans to fully tokenize money market funds within the next two years, and Nasdaq is also advancing a tokenized securities market capable of 24-hour trading by the end of next year."
He announced, "ASIC plans to completely revamp and relaunch its 'Innovation Hub' to support financial market innovation." The new Innovation Hub will operate an open collaborative model to address regulatory barriers faced by innovative firms, focusing on creating practical solutions rather than merely identifying problems. ASIC also plans to support the government's review of the 'Enhanced Regulatory Sandbox' to help grow Australia's fintech industry.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
