Asia’s capital markets are at an inflection point. Millennial trading technology and operations leaders are inheriting 40-year-old mainframe systems in a world where global interoperability, real-time settlement, and even digital assets are fast becoming baseline requirements.

This is no longer a matter of IT upgrades; it requires an urgent transformation of trading operations. This transformation story has elements of the region’s broader trends: T+1 settlement rollouts, the growing role of private markets, and evolving regulatory environments, but the core issue is clear: those who fail to modernize risk being left behind in an increasingly global, real-time marketplace.

However, in this rapidly evolving landscape, few regions are better positioned to leap ahead than Asia.

Speaking to The Asset in Singapore, Jon Hodges, head of trading and asset services, Asia-Pacific, at global fintech company FIS, has a front-row seat to the shifts underway, where private credit, digital assets, and real-time trading infrastructure are converging to reshape the financial ecosystem. He offers a clear-eyed view of how the region is charting its own path forward.

Leapfrogging the legacy

At the heart of this transformation lies a stark contrast: mature financial centres like Japan, Hong Kong, and Singapore are facing the challenge of modernizing deeply entrenched infrastructure, while emerging markets like Vietnam and Indonesia have the advantage of starting afresh. “It’s that greenfield opportunity,” says Hodges, “that allows some of these markets to skip entire generations of technology and go straight to real-time, cloud-native infrastructure.”

The sense of urgency is not theoretical. Countries across Asia are adapting quickly to the demands for speed and scale, particularly as the global settlement cycle shortens and regulatory expectations evolve.

Hodges points to recent reforms around T+1 settlement as a catalyst driving investment in post-trade automation and straight-through processing across the region. “The infrastructure is becoming more real-time, whether the systems are ready or not,” he notes. “The pressure is on to catch up, or get ahead.”

But Asia isn’t just following trends. In many ways, it’s leading the way. In markets like Vietnam, regulators and firms alike are showing an openness to new asset classes that’s far ahead of their global peers. “We’re being asked about supporting fractional ownership, tokenized assets, and digital instruments, not just in pilot mode, but in production,” he observes. “There’s a genuine appetite to do things differently.”

One of the defining shifts Hodges sees is the convergence of public, private, and digital assets. As institutional and wealth investors increasingly seek access to alternative investments, demand is rising for platforms that can support hybrid funds, private credit, and tokenized instruments all within the same operational framework.

“The old model of siloed systems, one for public markets, another for private equity, a separate one for digital, is breaking down,” Hodges says. But building a single platform for all asset classes isn't necessarily the answer.

Instead, he advocates for a connected model: powerful specialist tools linked by common data architecture and workflow orchestration. That way, firms can manage risk and performance across asset types without sacrificing depth in any one category.

Data is the new infrastructure

And data, he emphasizes, is the critical bridge. Once data models are aligned across asset classes, advanced technologies, particularly AI, can be applied in ways that meaningfully improve decision-making, forecasting, and operations. “It’s not just about automation anymore. It's about analytics, about pooling insight across your portfolio.”

Asia’s enthusiasm for AI, in particular, stands out. Hodges notes that while Europe remains cautious, often waiting for regulatory clarity before exploring new tools, Asian firms are more proactive. “Here, the mindset is: how can we pilot it, how can we apply it? That willingness to engage is a differentiator.”

Private credit remains the standout opportunity across the region, not just in terms of deal volume but also infrastructure build-out. As large global investors increase their exposure to Asia, local fund administrators, tech platforms, and service providers are racing to catch up.

“It’s a space that’s scaling rapidly, and we’re seeing new firms pop up across Singapore, Hong Kong, and Australia to meet that demand,” says Hodges. There’s also a push to make private assets more accessible to high-net-worth and even retail investors, especially in Australia and Japan, which in turn places greater pressure on systems to be more transparent, responsive, and scalable.

As fund structures become more complex, blending public and private assets in the same vehicle, administration and reporting needs become more sophisticated. Hodges points to the rise of hybrid funds as a key development in this space. “The demand isn’t just for access to private markets, it’s for liquidity, too,” he says. “That’s where we’re seeing real innovation.”

While institutional investors continue to dominate many private markets, there’s a growing movement to support smaller entrants, particularly in private equity. One trend Hodges highlights is the shift towards modular, cloud-based solutions that allow small fund managers to access the same operational capabilities as large global firms, but in a cost-effective, scalable way. “There’s a misconception that these tools are only for the big players. But increasingly, we’re seeing successful adoption by firms just starting out.”

Of course, technology doesn’t exist in a vacuum. Local regulatory dynamics, data sovereignty issues, and geopolitical tensions shape how platforms are designed and deployed. Hodges emphasizes that product leadership in Asia has to be grounded in regional nuance.

“You can’t take a global solution and expect it to plug-and-play across Asia. You need to be on the ground, listening to regulators, understanding market timelines, and localizing where it counts.”

What’s also changed, he says, is the nature of the conversations happening in Asia’s financial community. “Ten, 15 years ago, you’d go into a room and people would be reluctant to speak up. Now, you can’t get a word in, people are pushing back, contributing ideas, and genuinely shaping the roadmap. It’s a reflection of how much the region has grown in confidence and capability.”

Looking ahead, Hodges sees continued strength in Singapore, Japan, and Australia, but he’s also watching Vietnam, Indonesia, and Malaysia with interest. These markets may be smaller, but their trajectory is steep, and their willingness to adopt new frameworks gives them an edge.

“Asia isn’t just catching up anymore,” he says. “In many areas, it’s setting the pace.”