What Is Asset Tokenisation?
Asset tokenisation is the process of representing ownership of a real-world asset — a bond, a share, a property, a commodity — as a digital token on a blockchain. The token is a digital record of ownership, governed by smart contract code, that can be transferred, subdivided and settled far more efficiently than traditional paper or electronic registry systems.
The underlying asset does not change. A tokenised Australian government bond is still an Australian government bond. What changes is the infrastructure through which it is held, transferred and settled. Instead of clearing through CHESS or a custodian in T+2, a tokenised bond can settle in seconds, can be held in fractional units, and can be used as collateral in programmable finance applications.
This is not a speculative concept. Major financial institutions — BlackRock, JPMorgan, Goldman Sachs, BNY, Standard Chartered — are actively building tokenised asset products. The market is real, growing rapidly, and Australia has now legislated a formal regulatory framework for it.
Tokenised Products Available Today
The real-world asset (RWA) tokenisation market has grown to approximately $35–36 billion on-chain — nearly ten times its value in 2022. The growth is concentrated across several asset classes.
Tokenised Bonds and Fixed Income
Tokenised treasuries, fixed income instruments and on-chain credit have expanded steadily through 2025, reinforcing market confidence that tokenised assets can scale with genuine institutional demand. BlackRock's BUIDL fund — a tokenised money market fund on Ethereum — became the largest tokenised treasury fund within weeks of launch. JPMorgan's Onyx platform processes billions in intraday repo using tokenised collateral. Goldman Sachs and BNY are active participants in the tokenised bond market.
Tokenised Equities and ETFs
Tokenised public equities account for approximately $683 million in on-chain value and generate over $1.7 billion in monthly transfer volume. Platforms including Ondo Finance, Robinhood, Kraken and Gemini now offer tokenised versions of major US-listed stocks and ETFs. The practical implication for investors is fractional access to assets previously requiring full-share purchase minimums, and the ability to hold and transfer equities 24/7 outside exchange hours.
Tokenised Funds and Money Market Funds
Standard Chartered has highlighted the tokenisation of money market funds as a significant distribution opportunity, citing a successful collaboration with China Asset Management to expand retail access in Hong Kong. Tokenised fund units allow near-instant settlement and enable money market instruments to be used as programmable collateral in DeFi and institutional finance applications.
Tokenised Gold and Commodities
With gold reaching successive all-time highs through 2025–2026, tokenised gold has moved from novelty to infrastructure. Tokenised gold products — representing allocated physical gold held in vaults — are increasingly being used as collateral in on-chain finance, in the same way stablecoins became the settlement layer for crypto markets. Analysts position 2026 as the breakout year for tokenised commodities as collateral.
Tokenised Real Estate, Private Credit and Infrastructure
The tokenised asset universe extends well beyond liquid securities. Real estate, private credit, infrastructure debt and intellectual property are all being tokenised on various platforms, enabling fractional ownership of assets previously accessible only to institutional investors or high-net-worth individuals with large minimum investments.
| Asset Class | Estimated On-Chain Value | Key Platforms / Issuers | Status |
|---|---|---|---|
| Treasuries & Fixed Income | Largest segment of RWA market | BlackRock BUIDL, JPMorgan Onyx, Goldman Sachs | Active & scaling |
| Tokenised Equities & ETFs | ~$683M value · $1.7B+ monthly volume | Ondo, Robinhood, Kraken, Gemini | Growing rapidly |
| Money Market Funds | Included in fixed income figures | Standard Chartered, BlackRock | Active |
| Tokenised Gold | Accelerating in 2026 | Multiple platforms · PAXG · Tether Gold | Breakout year |
| Real Estate & Private Credit | Part of ~$36B total RWA market | Multiple specialist platforms | Early stage |
| Total RWA Market | ~$36 billion on-chain | — | ~10× since 2022 |
"More than half of the world's top 20 asset managers are expected to launch tokenised products by the end of 2026. This is no longer a fringe technology — it is becoming mainstream institutional infrastructure."
Australia's New Digital Assets Framework
On 8 April 2026, this Bill received Royal Assent — the most significant reform to Australia's financial services regulatory framework in years. It amends the Corporations Act 2001 to formally extend the AFSL framework to digital assets, introducing two new categories of financial products.
- Digital Asset Platforms (DAPs) — platforms that facilitate the issuance, transfer or exchange of digital assets classified as financial products
- Tokenised Custody Platforms (TCPs) — platforms that provide custody services for tokenised financial products
What the Legislation Requires
Operating a Digital Asset Platform or Tokenised Custody Platform is now classified as a financial service under the Corporations Act. Operators must hold an AFSL unless a specific exemption applies. Key provisions include:
- DAP and TCP operators are subject to standard AFSL obligations — conduct, disclosure, dispute resolution and financial requirements
- Certain fundraising, product disclosure and anti-hawking obligations are displaced for DAPs and TCPs — investor protection is delivered through the DAP/TCP Guide together with underlying asset disclosures
- A low-value DAP exemption applies: an issuer does not need to hold an AFSL if the total market value of transactions across all its platforms does not exceed $10 million over a rolling 12-month period
Key Timeline
What Can an AFSL Holder Advise On?
Whether an existing AFSL holder can advise on tokenised products depends on what the underlying token represents. The key distinction is between tokenised versions of existing financial products, and new product categories created by the Digital Assets Framework.
- Tokenised bonds and fixed income instruments (tokenised version of an existing financial product)
- Tokenised equities and ETFs (token representing a share or ETF unit)
- Tokenised managed fund units (already a financial product under the Corporations Act)
- Tokenised gold backed by allocated physical gold (depending on product structure)
- General education and research about tokenised asset markets
- Operating or advising on DAP structures (new product category)
- Operating or advising on TCP custody platforms (new product category)
- Tokenised products that are new financial products under the framework — not tokenised versions of existing products
- Personal financial advice on any tokenised product (requires a Statement of Advice regardless of product structure)
If the token represents an existing financial product — a bond, an equity, a managed fund unit — the existing AFSL authorisations likely already cover general advice on that instrument. The token is a delivery mechanism; the underlying asset type determines the regulatory classification.
If the product is structured as a new DAP or TCP under the Digital Assets Framework, the adviser needs specific AFSL authorisation for those new product categories once the framework commences in April 2027. AFSL holders should review their existing authorisations and seek specific legal advice before advising clients on novel tokenised product structures.
Investment Implications for Australian Investors
The combination of rapid market growth and landmark legislation creates a clear investment and education opportunity. Several themes are worth monitoring:
- Infrastructure plays: Companies building tokenised asset infrastructure — platforms, custodians, settlement providers — are positioned in a high-growth segment of financial technology. Listed equities with exposure include traditional custodians expanding into digital asset custody.
- ASX-listed crypto ETFs: Australian investors can access the tokenised asset growth theme through ASX-listed Bitcoin and Ethereum ETFs (VBTC, EBTC, IBIT) — the most liquid and regulated on-ramp currently available.
- Tokenised gold: If tokenised gold becomes the primary on-chain collateral layer, demand for the underlying physical gold increases. ASX-listed gold ETFs and gold miners provide indirect exposure.
- Compliance and legal services: The new framework creates demand for AFSL-compliant tokenised product structuring. Law firms and compliance specialists with digital asset expertise are well positioned.
- Watch for ASX-listed tokenised products: As the framework commences in April 2027, expect the first DAP-authorised tokenised products to be listed or made available to retail investors through established platforms.
- The tokenised real-world asset market has grown to ~$36 billion on-chain — nearly 10× since 2022 — with $100 billion+ predicted by end of 2026.
- Major institutions including BlackRock, JPMorgan, Goldman Sachs and Standard Chartered are actively building tokenised asset infrastructure.
- Australia's Corporations Amendment (Digital Assets Framework) Bill 2025 received Royal Assent on 8 April 2026 — the most significant digital asset legislation in Australia's history.
- Two new financial product categories are created: Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs). Operating these requires an AFSL from April 2027.
- Tokenised versions of existing financial products (bonds, equities, managed funds) are likely already within the scope of existing AFSL authorisations — the token is a delivery mechanism, not a new product type.
- A six-month transition period (April–October 2027) allows operators to lodge AFSL applications while continuing to operate under existing arrangements.
- AFSL holders should seek specific legal advice from a firm specialising in digital asset regulation before advising clients on novel tokenised product structures.