Main Points:
- The Reserve Bank of Australia (RBA) and DFCRC launch Project Acacia to trial 24 wholesale tokenization use cases
- Trials include stablecoins, bank deposit tokens, and a pilot wholesale CBDC across multiple DLT platforms
- ASIC provides regulatory relief to streamline real-money and simulated pilots
- Global tokenization market projected to grow from $3.32 billion in 2024 to $3.95 billion in 2025
- Comparative CBDC and tokenization pilots: BIS’s Project Dunbar, MAS’s Project Ubin, SNB’s Project Helvetia
- Potential efficiency gains: faster settlement, lower costs, increased transparency in wholesale financial markets
- Key participants: major Australian banks (CBA, ANZ, Westpac), Fireblocks, Northern Trust, Hedera, R3 Corda, Canvas Connect
- Pilot results expected Q1 2026 to inform Australia’s digital asset strategy and regulatory framework
Introduction
In an era where digital innovation redefines financial markets, the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) have embarked on Project Acacia, a landmark wholesale tokenization initiative. Unveiled on 10 July 2025, this collaboration aims to explore how tokenized assets and central bank digital currencies (CBDCs) can modernize Australia’s financial infrastructure by improving settlement speed, reducing operational costs, and boosting market transparency.
Project Acacia: Scope and Objectives
Project Acacia comprises 24 use cases, divided into:
- 19 real-money pilots covering fixed income, private markets, trade receivables, and carbon credits
- 5 proof-of-concept simulations to test foundational protocols before live deployment
Key settlement assets include:
- Stablecoins pegged to the Australian dollar
- Bank deposit tokens representing ledger balances at commercial banks
- Pilot wholesale CBDC issued by the RBA on permissioned DLT networks
These pilots will run until Q1 2026, with findings to shape the RBA’s future digital asset roadmap and inform broader economic policy.
Regulatory Relief and Industry Collaboration
To facilitate safe experimentation, the Australian Securities and Investments Commission (ASIC) has granted conditional relief from certain licensing and reporting requirements, enabling participants to transact in digital Australian dollars without breaching existing laws. ASIC Commissioner Kate O’Rourke emphasized that this relief “[…] will allow these technologies to be sensibly tested—to explore opportunities and identify and tackle risks”.
Participants span the financial ecosystem:
- Major banks: Commonwealth Bank of Australia (CBA), Australia and New Zealand Banking Group (ANZ), Westpac Banking Corporation
- Fintechs and custodians: Fireblocks, Northern Trust
- Blockchain platforms: Hedera, R3 Corda, Canvas Connect
- Regulators and research bodies: ASIC, APRA, Australian Treasury
This cross-sector collaboration ensures that Project Acacia benefits from diverse expertise, from legal frameworks to technical architecture.
Global Tokenization Market Trends
The tokenization market has seen robust growth as institutions recognize the benefits of converting real-world assets into tradable tokens. According to Fortune Business Insights, the global tokenization market size is forecast to rise from $3.32 billion in 2024 to $3.95 billion in 2025, representing an 18.9% annual increase.
| Year | Market Size (USD Billion) |
|---|---|
| 2024 | 3.32 |
| 2025 | 3.95 |
- MAS Project Ubin: Singapore’s nine-phase experiment demonstrating tokenized SGD for interbank payments and securities settlement, culminating in real-world deployments with HSBC and JP Morgan
- SNB Project Helvetia: Swiss National Bank’s Phase II pilot using wCBDC for institutional settlement with SIX Digital Exchange, testing delivery-versus-payment on Ethereum and Corda
These initiatives highlight common themes: enhancing cross-border efficiency, ensuring liquidity safety, and preserving regulatory compliance.
Technical Architecture and Platforms
Project Acacia leverages both public-permissioned and private blockchains:
| Platform | Characteristics |
|---|---|
| Hedera | High throughput, proof-of-stake governance |
| R3 Corda | Enterprise DLT focused on privacy and scale |
| Canvas Connect | EVM-compatible network optimized for financial assets |
By issuing pilot CBDC and stablecoins on these platforms, the RBA and participants will assess interoperability, throughput, and settlement finality.
Expected Benefits and Risks
Benefits:
- Faster settlement times (seconds vs. days)
- Reduced counterparty risk through atomic settlement
- Transparent auditing via immutable ledgers
Risks:
- Cybersecurity vulnerabilities in novel DLT setups
- Operational integration with legacy banking systems
- Regulatory uncertainties around token classification
Project Acacia’s phased approach—combining real and simulated pilots—aims to mitigate these risks before full-scale deployment.
Next Steps and Timeline
- Pilots commence immediately upon participant onboarding (July 2025)
- Mid-pilot review at six months to refine use cases
- Final report and policy recommendations published in Q1 2026
The findings will guide the RBA’s stance on issuing a live CBDC and inform Australia’s digital asset regulatory framework.
Conclusion
Project Acacia marks a critical step in integrating blockchain-based digital money into wholesale financial markets. By uniting regulators, banks, fintechs, and technology providers, the initiative will deliver insights on operational feasibility, regulatory clarity, and economic impact. As global tokenization markets surge—projected to near $4 billion by 2025—Australia’s real-world pilots position it at the forefront of digital finance innovation. The outcomes of Project Acacia will not only influence domestic policy but also contribute to international discourse on the future of money.
