Openmarkets taps $22tn tokenised market

Openmarkets Group and Ondo Finance will bring the latter's institutional-grade tokenised financial products to eligible Australian investors, developing new products tailored to the local market.

Both organisations have signed a Memorandum of Understanding (MoU) to bring together Ondo's global tokenisation capabilities and Openmarkets' local market expertise and financial infrastructure.

Specifically, the partnership will assess pathways for Openmarkets to distribute selected Ondo products, while exploring tokenised products and market infrastructure tailored to local investors, potentially including tokenised Australian-listed securities and access to offshore tokenised markets, the parties said.

The MoU comes amid many organisations not yet willing to make the first step to expand into digital finance due to several factors highlighted by BlockchainAPAC during its recent national roadshow in Australia. One of these is the "first-mover costs" that are holding back investment even though technology is no longer the principal barrier.

Meanwhile, the government recently passed the Digital Asset Framework Bill to mandate digital asset exchanges and platforms to carry an AFSL. Openmarkets carries an AFSL and recently expanded its operations into private wealth advisory.

The collaboration is the latest in Openmarkets' plans to add digital assets to its brokerage, clearing, settlement and wealth management services, extending its regulated infrastructure into Australia's emerging tokenised markets. It estimates that the global tokenised asset market will reach $22 trillion (US$16tn) by 2030.

Commenting on the partnership, Openmarkets chief executive Dan Jowett said the combination of both companies' capabilities can lead to the procurement of "compelling" tokenised products.

"We're delighted to collaborate with Ondo, a trusted onchain finance global leader, to bring its world class suite of tokenised products to local investors and explore new tokenised offerings," Jowett said.

"Tokenisation is already transforming Australia's financial services industry and improving the way local participants access, transact and hold assets.

"As a licensed broker and fintech with a deep market footprint, Openmarkets is uniquely positioned as an infrastructure provider and distributor of digital products."

Meanwhile, Ondo Finance managing director of global business development Min Lin said Australia is a "natural" next step in the company's global expansion.

"Openmarkets brings deep local market expertise and established financial infrastructure, creating a compelling pathway to explore how Ondo's institutional-grade tokenised products can reach eligible Australian investors," Lin said.

"Together, we aim to connect one of the Asia Pacific region's most sophisticated capital markets with the global onchain economy."

The Commonwealth Superannuation Corporation and Northern Trust recently announced a similar partnership to advance digital investment infrastructure across institutional markets.

Both will focus on emerging technologies like digital assets and tokenisation and other initiatives throughout the institutional investment process.