The Australian government has announced the launch of a new pilot project aimed at testing tokenized assets, stablecoins, and a wholesale central bank digital currency (CBDC). This initiative marks the second phase of Project Acacia, which is being carried out in collaboration with the Digital Finance Cooperative Research Centre.
Objectives and Directions of the Experiment
This experiment will test 24 use cases, including real-money applications in repo markets, private credit, carbon markets, and government securities. This is expected to help better understand how tokenization could alter liquidity, risk, and settlement in institutional finance.
Participation of Major Banks
Three of Australia's largest banks are participating in the project: CBA, ANZ, and Westpac. CBA is working with JPMorgan to evaluate the impact of digital currencies in repo transactions, while ANZ is focused on tokenized trade payables and fixed-income settlement.
Expected Outcomes and Conclusions
The six-month pilot includes regulatory exemptions granted by ASIC. Findings are expected to be published in early 2026. This will provide regulators and institutions with a better understanding of how tokenization can reshape the principles of market operations.
The launch of this experimental project is a significant step for the Australian financial system, opening new possibilities in the realm of tokenized assets and digital currencies.
