Australia’s central bank is ramping up its digital finance efforts, announcing the next stage of its central bank digital currency (CBDC) and stablecoin experimentation under the banner of Project Acacia. The Reserve Bank of Australia (RBA) will conduct a six-month trial in partnership with major banks, fintechs, and regulators to explore tokenized assets and digital payments infrastructure in wholesale financial markets.
RBA and DFCRC Collaborate on Phase Two of Project Acacia
The initiative, a joint effort between the RBA and the Digital Finance Cooperative Research Centre (DFCRC), was first introduced in November 2024. The current phase includes 24 use cases, with 19 utilizing real funds and 5 using simulated transactions to test emerging financial technologies across multiple sectors — including fixed income, trade finance, carbon credits, and private markets.
Participants will trial bank-issued deposit tokens, stablecoins, and a pilot wholesale CBDC to assess how tokenized digital money can improve liquidity, efficiency, and settlement times in traditional finance.
Big Banks and JPMorgan Join the Digital Currency Pilot
Three of Australia’s four major banks — Commonwealth Bank (CBA), ANZ, and Westpac — are taking part. CBA, in collaboration with JPMorgan, will test how CBDCs and tokenized collateral can optimize repo markets — essential infrastructure for liquidity and monetary policy execution.
“The repo market, with its critical role in liquidity management and monetary policy implementation, represents an ideal starting point for this exploration,” said Sophie Gilder, CBA’s managing director of blockchain and digital assets.
Meanwhile, ANZ will lead trials involving tokenized trade payables and tokenized fixed income, aiming to unlock working capital for suppliers and facilitate risk-free credit settlement with wholesale CBDCs.
ASIC Grants Regulatory Relief for Innovation
Australia’s securities regulator (ASIC) has granted temporary relief from certain regulatory requirements, enabling firms to legally test digital instruments that currently fall outside the country’s existing legal frameworks.
“The relief announced today allows these technologies to be sensibly tested — to explore opportunities and identify and tackle risks,” said Kate O’Rourke, ASIC Commissioner.
What’s Next?
The trial is scheduled to run through late 2025, with findings expected in Q1 2026. The initiative reflects growing momentum within Australia to craft regulatory clarity for digital assets, as the government continues consultations on a national crypto framework and combats de-banking challenges affecting the industry.
Disclaimer
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