#Superannuation

Tokenisation to change SMSF landscape

Asset tokenization is poised to fundamentally reshape the Australian Self-Managed Super Fund (SMSF) landscape by enabling fractional ownership of high-value assets like property, private credit, and government bonds. Industry expert Hellen Molloy highlights that tokenization allows investors to access large-scale investments previously restricted by high capital requirements, potentially diversifying SMSF portfolios beyond traditional holdings. While this shift promises increased liquidity and accessibility, it introduces significant operational and regulatory hurdles for the current superannuation framework. Key challenges include establishing legal ownership, defining custody protocols, and determining standardized methods for valuation, auditing, and tax reporting. As tokenized assets become more prevalent, the Australian SMSF ecosystem must evolve its administrative and compliance infrastructure to ensure trustee protection and accurate record-keeping. This transition represents a critical juncture for the retirement savings sector, requiring industry-wide collaboration to resolve practical questions regarding asset verification and transaction security. Ultimately, the integration of tokenized assets into SMSFs will necessitate a modernization of the existing regulatory and administrative systems to accommodate digital ownership structures.

smsmagazine.com.au·4h ago