Nikolas Sargeant
Australia's Reserve Bank has launched the second phase of its ambitious digital currency exploration, bringing together major financial institutions to test how central bank digital currencies and tokenized assets can transform wholesale markets. The six-month trial represents a significant step forward in the country's digital finance evolution.
The Reserve Bank of Australia announced Thursday that it will begin testing stablecoins, bank deposit tokens, and a pilot wholesale central bank digital currency through Project Acacia's second phase. This comprehensive initiative involves 24 distinct use cases, with 19 featuring real money transactions and five operating as proof-of-concept simulations. The trial encompasses diverse asset classes including fixed income securities, private markets, trade receivables, and carbon credits. The timing aligns with broader Australian digital currency developments, including the recent launch of the Australian Digital Dollar stablecoin on the Hedera network.
Three of Australia's four major banks are participating in the groundbreaking pilot program. Commonwealth Bank will collaborate with JPMorgan to evaluate digital currencies in the repo market, focusing on improved efficiency and liquidity with reduced risk. ANZ Bank is leading tokenized trade payables testing to address supplier working capital challenges, while also exploring wholesale CBDC applications for risk-free credit and liquidity settlement. Westpac Banking Corporation rounds out the major bank participation in this historic trial.
The Australian Securities and Investments Commission has provided regulatory relief to allow testing of assets currently outside existing legal frameworks. Commissioner Kate O'Rourke emphasized the commission's recognition of digital asset technologies' potential in wholesale markets. Results from this phase are expected in the first quarter of 2026, potentially shaping Australia's future digital currency regulatory landscape and implementation strategies.
