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Australia is set to embark on a landmark phase of tokenised asset settlement and wholesale central bank digital currency (CBDC) trials, with 24 innovative use cases selected for implementation under Project Acacia—a joint initiative by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC).
The pilot phase will feature 19 live use cases involving real money and asset transactions, and five proof-of-concept projects using simulated transactions. Selected participants include a cross-section of Australian financial institutions, fintechs, and infrastructure providers exploring a variety of asset classes such as fixed income, private markets, trade receivables, and carbon credits.
Settlement mechanisms will include stablecoins, bank-issued deposit tokens, a pilot wholesale CBDC, and innovative applications of existing exchange settlement accounts at the RBA.
The pilot CBDC will be issued and tested across multiple distributed ledger technology (DLT) platforms, including Hedera, Redbelly Network, R3 Corda, Canvas Connect, and other EVM-compatible networks. The pilot period will run for six months, with findings expected in a comprehensive report due in Q1 2026.
Driving Future-Ready Financial Infrastructure
Brad Jones, Assistant Governor (Financial System) at the RBA, said the trials represent a strategic effort to future-proof Australia’s financial system.
“Ensuring that Australia’s payments and monetary arrangements are fit-for-purpose in the digital age is a strategic priority for the RBA and the Payments System Board,” said Jones. “Project Acacia is a valuable opportunity to collaboratively explore how innovations in digital money and tokenised asset markets might improve the functioning of wholesale financial markets.”
The initiative is part of the broader mandate to assess the role of central bank and privately issued digital money in enhancing market efficiency, liquidity, and resilience.
Regulatory Support from ASIC
To facilitate the trials, the Australian Securities and Investments Commission (ASIC) has granted regulatory relief to participating entities, allowing them to experiment with digital asset technologies in a controlled and compliant environment.
Kate O’Rourke, ASIC Commissioner, highlighted the regulator’s commitment to balanced innovation:
“ASIC sees useful applications for the technologies underlying digital assets in wholesale markets. The relief from regulatory requirements will allow these technologies to be sensibly tested—to explore opportunities and identify and tackle risks.”
She added that Project Acacia creates a unique platform for collaboration between industry and regulators, promoting shared learning and ensuring that future market innovations align with economic growth and financial stability.
Shaping the Future of Digital Finance
Project Acacia marks a significant step in Australia’s digital finance roadmap, building on earlier CBDC and tokenisation research. By supporting real-world trials of emerging technologies, the initiative is expected to yield actionable insights that will guide the development of regulatory frameworks and inform the potential rollout of wholesale digital currencies.
The project is seen as a key enabler for modernising financial market infrastructure, unlocking new efficiencies, and reinforcing Australia’s position as a leader in digital finance innovation.
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