David Edwards
The Reserve Bank of Australia (RBA) has initiated the second phase of its digital currency program under Project Acacia, signaling a significant evolution in the country’s blockchain and tokenization agenda.
Unveiled on Thursday, the trial explores the application of stablecoins, bank deposit tokens, and a wholesale central bank digital currency (CBDC) across wholesale financial markets. In collaboration with the Digital Finance Cooperative Research Centre, the RBA will test 24 use cases—19 involving real currency and five structured as proofs-of-concept with simulated assets.
Participants in the six-month trial include a diverse cohort of fintech innovators and Australia’s major financial institutions. The initiative will evaluate digital asset applications across asset classes including fixed income, private markets, trade receivables, and carbon credits. It will also assess novel mechanisms for leveraging central bank accounts.
Among the nation’s Big Four banks, Commonwealth Bank (CBA), Australia and New Zealand Banking Group (ANZ), and Westpac have signed on. CBA is partnering with JPMorgan to test digital currencies and collateral solutions in the repo market—a foundational element of liquidity management and monetary policy implementation.
“Given the repo market’s essential role in financial stability, it represents an ideal environment for exploring blockchain-driven efficiency,” said Sophie Gilder, CBA’s Managing Director of Blockchain and Digital Assets.
Meanwhile, ANZ will lead testing on tokenized trade payables to enhance supplier liquidity and cash flow. The bank will also examine the use of a wholesale CBDC for settlement in tokenized fixed-income markets, aimed at delivering risk-free liquidity.
Regulatory flexibility has been extended by the Australian Securities and Investments Commission (ASIC), which has granted provisional relief to enable real-world testing of digital assets currently outside the existing legal framework.
“We see practical applications of digital asset technologies in wholesale markets,” said ASIC Commissioner Kate O’Rourke. “Regulatory relief is essential to responsibly evaluate these innovations while addressing emerging risks.”
Australia’s broader regulatory posture continues to evolve. In March, the Labor government proposed bringing crypto exchanges under existing financial services laws. This follows industry consultations dating back to August 2022. The government is also engaging with major banks to assess and mitigate de-banking practices impacting the crypto sector.
The findings of the current pilot are slated for release in Q1 2026 and will help shape the country’s digital finance regulatory roadmap.
