How Australian Bond Exchange Is Using AI and Tokenisation to Cut Losses and Grow

A Leaner, More Focused ABE

Australian Bond Exchange (ABE) marked FY25 as a pivotal year, trimming its consolidated loss to $4.2 million, down from $5.6 million the previous year. This improvement was driven primarily by a 30% reduction in operating expenses, reflecting significant structural changes and headcount rationalisation. CEO Bradley McCosker highlighted that these moves have made the company "leaner, faster, more focused and more resilient," setting the stage for sustainable growth.

Despite a 34.9% decline in total income to $3.1 million, largely due to challenging market conditions and internal streamlining, ABE managed an impressive $10 billion in client orders. The number of active clients rose 14%, underscoring strong engagement and demand for transparent yield opportunities in the over-the-counter (OTC) financial markets.

Diversification and Capital Strengthening

ABE’s Corporate Advisory division, introduced in the prior year, contributed positively to revenue, helping to diversify income streams and reduce earnings volatility. The company also secured additional capital through a $0.7 million share placement, $0.5 million in convertible notes, and a $1.8 million cash advance facility. These capital initiatives support liquidity, operational needs, and strategic investments, while shareholder approval is sought for further capital raising options.

Notably, ABE successfully varied its Australian Financial Services Licence (AFSL), enabling new revenue opportunities and cost reductions by terminating its corporate authorised representative appointment. This regulatory progress aligns with the company’s goal to broaden product offerings and enhance market access.

Technology as a Differentiator

ABE’s fintech edge lies in its vertically integrated platform combining transaction technology, AI-driven credit assessment, and settlement infrastructure. Its proprietary AI credit intelligence engine, CAIT, now delivers near rating-agency quality outputs rapidly, improving client outcomes and operational efficiency. The company is also pioneering agentic commerce; where AI agents transact autonomously; and instant settlement, collaborating with the Reserve Bank of Australia on central bank digital currency (CBDC) settlement technology.

This fusion of AI and settlement technology positions ABE uniquely to capitalize on emerging market trends requiring real-time, trusted, and regulated transaction rails. McCosker emphasized that this is not a pivot but a natural evolution of their platform, anticipating significant future monetisation opportunities in data and analytics.

Looking Ahead – Scaling and Profitability

For FY26, ABE’s priorities include returning to consistent profitability, scaling distribution of core bond and structured products, deploying next-generation settlement APIs, and commercialising risk intelligence analytics as recurring revenue streams. The company believes it is transitioning from a rebuilding phase to a scaling phase, with each new client and transaction expected to contribute higher margins.

With demographic shifts, rising yields, and increasing demand for transparency favoring its business model, ABE aims to solidify its position as Australia’s leading OTC securities marketplace and a global pioneer in digital and tokenised transaction solutions.