'Lack of support' as Australia lags behind on blockchain

Australia's blockchain sector is starting to gain some traction as tokenisation, digital assets, and new investment platforms attract growing interest from investors.

But due to years of regulatory delays and limited or difficult-to-attain government support, Australia still risks lagging behind other countries unless a more holistic approach is taken.

Technology platforms are transforming how investors discover, monitor and manage assets, creating opportunities that were previously inaccessible outside established financial networks.

Historically, Australian investors relied heavily on public markets such as the ASX or personal networks to access investment opportunities. Digital platforms are changing that dynamic by providing broader access, transparency and real-time visibility into investments.

Blockchain investing is no longer only the domain of the expert investor.

Contemporary investors increasingly expect more involvement in their portfolios, not relying solely on fund managers, according to Black Tie Founder and CEO, Caroline Macdonald.

"Investors want to be across their investment," Macdonald said.

"They want to see live tracking, live data. They want the flexibility to be able to move that investment when the need comes."

The growing sophistication of investment technology is also driving interest in emerging technology companies and startups, creating new opportunities for investors seeking exposure to innovation-driven sectors.

However, despite increasing market demand, Australia has lost valuable ground because of delays in establishing clear regulatory frameworks for blockchain and digital asset technology.

"The reason we fell behind was the lack of government support," Macdonald said.

While Australia has recently introduced regulatory reforms aimed at digital assets and blockchain-based financial services, the sector is still playing catch-up after years of uncertainty.

Macdonald's commentary reflects broader concerns across Australia's technology sector regarding the 2026 federal budget, which many industry groups criticised for lacking major initiatives aimed at accelerating innovation and emerging technology adoption.

Government assistance in this space should extend beyond direct funding and regulation. 

While there are research and development incentives already available to businesses, lack of communication, as well as difficulties navigating grant programs, are roadblocks to accessing this help.

"It would be great if the government had a specific person or help desk that took innovators by the hand and said, this is the path that we can help you on," Macdonald said.

Overseas markets, with one key example being Singapore, have demonstrated how coordinated government support can accelerate innovation ecosystems.

The stakes are significant - blockchain-related activity represents a substantial economic opportunity, contributing $24 billion, or about one per cent of the nation's GDP.

One of the technologies attracting growing attention from investors and businesses is tokenisation, which involves representing real-world assets digitally on blockchain networks.

The concept is increasingly being viewed as a way to unlock value from traditionally illiquid assets by making them easier to trade, finance and manage.

Australia's mining sector is emerging as one of the most promising use cases. Blockchain technology can allow mining companies to verify assets digitally, establish trusted valuations and use those assets more effectively to access capital.

The rise of tokenised real-world assets (RWAs) has become one of the most closely watched trends in global financial markets, with banks, asset managers and technology providers investing heavily in infrastructure designed to support digital representations of traditional assets.

"Digital assets and tokenisation are not just about cryptocurrency," Macdonald explained.

"They represent a productivity opportunity for Australia, capable of modernising capital markets and improving access to investment. When innovators face uncertainty, capital and talent inevitably migrate to jurisdictions that provide clearer pathways for growth."

Beyond tokenisation, blockchain has reached a new stage of maturity.

After years of speculation and experimentation, the technology is increasingly being viewed as foundational infrastructure, rather than a niche or somewhat underground innovation.

"Blockchain is not a future concept; it is rapidly becoming the infrastructure layer for global trade, investment and digital ownership," Macdonald said.

"Its greatest strengths is its ability to democratise access to investment opportunities that were traditionally reserved for institutions and high-net-worth investors.

"Australia cannot afford to watch from the sidelines."

Rather than completely overhauling traditional financial systems overnight, adoption is likely to operate through hybrid models, in which existing banking systems and blockchain networks work alongside one another.

That gradual approach is necessary, because major technology transitions carry significant risks.

One of the biggest challenges facing blockchain adoption remains usability. While the underlying technology has matured, many platforms remain difficult for mainstream users to navigate.

As a result, significant investment is now flowing into user experience, education and interface design rather than blockchain infrastructure itself.

Black Tie has adopted what Bowler describes as a hybrid Web3 strategy, combining blockchain infrastructure with more familiar Web2-style interfaces to reduce complexity and improve trust among users.

"We've taken away that real complexity that comes with the blockchains," Macdonald said.

Artificial intelligence is creating a similar dynamic across the technology sector.

While AI remains one of the most heavily discussed technology trends, organisations should focus on practical outcomes, instead of implementing it simply because it is fashionable.

For Black Tie, the most immediate value of AI lies in education and customer engagement.

"The key thing for our industry is education," Macdonald said.

"We're implementing a lot of AI into education and getting that out to our clients, because that's the most important thing for us."

As blockchain, tokenisation and AI continue to converge, Australia's challenge is no longer proving the technologies are viable. 

The focus must shift to accelerating adoption, improving user accessibility and ensuring the country remains competitive in a rapidly evolving global innovation landscape.