- RBA launches Phase Two of Project Acacia to test digital currencies in wholesale finance.
- 24 use cases include stablecoins, bank-issued tokens, and pilot CBDCs.
- Major banks and regulators collaborate to explore tokenization under relaxed compliance rules.
Australia has launched an ambitious trial under Phase Two of Project Acacia, aiming to test how digital currencies could enhance efficiency and transparency in wholesale financial markets.
Key financial institutions, including the Commonwealth Bank, ANZ, and Westpac, have joined the initiative. CBA, in partnership with JPMorgan, is testing the use of digital tokens in the repo market, while ANZ is focusing on tokenized trade payables and fixed-income settlements.
Australia Charts New Course in Tokenized Finance with CBDC and Stablecoin Pilot
The project reflects growing global interest in digitizing money and modernizing financial infrastructures. With real-time settlement capabilities and programmable features, digital currencies have the potential to streamline complex transactions and reduce costs across sectors. Australia’s pilot explores how these innovations could work at scale in high-volume wholesale markets.
Participants are not just banks, but a cross-section of the digital economy, including startups developing novel fintech solutions. This diversity ensures the trial tests both legacy systems and disruptive technologies, creating a broader foundation for evaluating the utility of tokenized finance tools.
The initiative also responds to structural challenges in Australia’s crypto landscape. De-banking—where traditional banks sever ties with crypto-related businesses—has prompted concern from policymakers. By involving regulated banks in CBDC and stablecoin trials, Project Acacia offers a potential roadmap for balancing innovation with financial integrity.
Australia’s approach stands out for its pragmatism. Rather than rushing to launch a retail CBDC, the RBA is focusing on wholesale applications that promise systemic benefits. If successful, this trial could inform future decisions on broader CBDC issuance and support the development of compliant, secure digital financial services.
Project Acacia positions Australia as a global testbed for digital finance, setting the stage for transformative changes in how money moves across wholesale markets.
“Innovation is the ability to see change as an opportunity – not a threat.” — Steve Jobs
