The Reserve Bank of Australia is initiating the second phase of Project Acacia, which involves trials for digital currencies and tokenization. Results are expected by early 2026.
Goals and Characteristics of the Project
The Reserve Bank of Australia (RBA) has announced the next phase in its exploration of digital currencies. As part of the second phase of Project Acacia, launched last November, the RBA will test stablecoins, deposit tokens, and a pilot wholesale CBDC. The trials will run for the next six months, covering 24 use cases including 19 with real funds and five proofs-of-concept, encompassing asset classes such as fixed income, private markets, and carbon credits.
Participation of Major Banks in the Trials
Three of Australia's 'Big Four' banks—Commonwealth Bank (CBA), Australia and New Zealand Banking Group (ANZ), and Westpac—will participate in the trial, along with local fintechs and global partners. CBA will partner with JPMorgan to explore the potential of digital currencies and tokenized collateral in the repo market, which is crucial for liquidity management. ANZ will test tokenized trade payables to aid suppliers' cash flow management, and will also conduct trials of tokenized fixed-income instruments using a wholesale CBDC.
Regulatory Support for Digital Asset Innovations
The Australian Securities and Investments Commission (ASIC) has granted regulatory relief to trial participants, allowing them to test digital assets that currently fall outside existing legal frameworks. ASIC Commissioner Kate O’Rourke noted that the regulator sees useful applications for the technologies underlying digital assets in wholesale markets and emphasized the importance of sensible testing to explore opportunities and identify risks. Australia's regulatory landscape for crypto is gradually evolving.
The trials for digital currencies and tokenization conducted by the Reserve Bank of Australia in collaboration with major banks aim to uncover new possibilities and improvements in financial markets and liquidity management.
