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is a joint research initiative by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) that is designed to explore how different forms of digital money could facilitate the development of wholesale tokenised asset markets in Australia.
This project is a key part of the RBA's strategic priority to shape the future of money in an evolving technological landscape. It builds upon findings from a , which highlighted strong industry interest in using a central bank digital currency (CBDC) for the “atomic” settlement of tokenised asset transactions. Atomic settlement refers to a process where both legs of a transaction are completed simultaneously, making it technologically infeasible for one side to occur without the other.
The initiative is currently in a six-month testing phase, with a report on the findings from the project expected to be published in the first quarter of 2026.
The RBA sets out that asset tokenisation could be a positive innovation with the potential for significant transaction cost savings, but it also seeks to scrutinise the claimed benefits and manage the associated risks through this project.
The central question this project seeks to answer is whether and how central bank money might need to evolve to support these new markets while ensuring financial stability.
Project Acacia is structured in two phases. Phase 1 was a conceptual research stage that identified and evaluated various settlement models for tokenised assets and was completed in August 2024. Phase 2, currently underway, is an experimental phase involving collaboration with industry participants to develop and test prototypes of settlement models, framed by use cases proposed by industry.
Australia is taking a cautious yet innovation-driven path in developing and testing prototypes for digital settlement models, guided by industry-led use cases. This approach balances regulatory compliance with a clear commitment to progress.
Compared with frameworks in the EU, UK and US, Australia’s model stands out for its collaborative and phased nature.
The bigger picture
Australia’s approach to digital assets is cautious but supportive of innovation. Rather than rushing to introduce prescriptive rules, the authorities are prioritising testing and prototyping to ensure regulatory frameworks evolve alongside market developments.
Project Acacia complements the RBA’s ongoing work on a wholesale CBDC and broader tokenised asset initiatives.
It also links to existing regulatory frameworks, including the , Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) rules and guidance on digital assets from the Australian Securities and Investments Commission (ASIC). The core regulatory priorities are operational resilience, settlement finality and prudential soundness.
Other jurisdictions are also exploring how to implement regulation in the digital asset space. The EU introduced its own framework under the (MiCA), which entered into force in June 2023 and began to be implemented from mid-2024. The regulation focuses on licensing, consumer protection and cross-border harmonisation, and takes a more prescriptive approach than Australia’s lighter-touch, proof-of-concept model.
In the UK, the Financial Conduct Authority (FCA) and the Bank of England’s CBDC initiatives have focused on regulatory sandboxes (controlled environments where businesses can test products and services with regulatory supervision but some rules eased for a limited time), retail and wholesale CBDC design and enhancing regulatory clarity for tokenised assets.
The UK regulators’ approach has been cautious, emphasising robust AML and know your customer (KYC) standards and governance structures, with frameworks integrated into ongoing prudential supervision.
The US has taken a pro-crypto position since the beginning of the second Trump administration, with the the most notable legislative development. In addition, the Federal Reserve’s tokenised asset pilots and the Office of the Comptroller of the Currency’s (OCC) guidance for banks on crypto-assets highlight risk management, compliance and interagency coordination.
So far, the focus has been on financial stability and risk mitigation, with less emphasis on industry co-design than under Project Acacia. However, the US landscape is complex, with growing state versus federal regulatory fragmentation, in contrast to Australia’s centralised, RBA-led coordination.
Project Acacia aligns with key global trends in digital money, particularly the growing convergence on prioritising operational resilience and settlement finality. Jurisdictions worldwide have stressed that tokenised settlement is meaningful only if systems are robust and finality is assured.
Australia’s advantage lies in the RBA’s phased, collaborative approach, which enables local institutions to prototype and test their processes before being subject to full-scale compliance. This creates room for innovation while reducing immediate legal and operational burdens.
Firms active in cross-border markets can leverage their experience with the EU and UK frameworks to anticipate Project Acacia’s likely recommendations in areas such as AML/KYC, cybersecurity and governance. There will likely be considerable overlap, with Australia joining those jurisdictions in taking a cautious, structured approach, albeit with a lighter touch.
By adapting early and taking lessons from Europe, firms operating in Australia can position themselves for interoperability with emerging international standards. This early alignment could provide them with a first-mover advantage in tokenised settlement services.
Why should you care?
The extent to which firms need to adapt to the RBA’s Project Acacia framework depends on their role in payments and settlement markets, and the degree of access they seek to central bank money.
The signals that tokenised settlement is no longer a niche experiment, but is moving toward mainstream policy. For institutions with direct or indirect access to settlement systems, this introduces both obligations and opportunities.
Rather than imposing prescriptive rules, Project Acacia focuses on demonstrating resilience, compliance and customer protection in a tokenised settlement environment. Firms will need to prove they can integrate tokenised assets and settlement tokens into existing infrastructure without creating financial stability or conduct risks.
For example, a payments service provider (PSP) or custodian handling tokenised assets would need to comply by showing that its onboarding processes, transaction monitoring and authentication systems can handle digital settlement instruments securely.
This includes implementing multi-factor authentication, aligning contracts to recognise settlement finality, and ensuring data and audit trails meet central bank and prudential standards. Service disruptions or weak controls could mean loss of access to central bank systems, reputational damage and regulatory penalties.
Operational resilience will be another focal point. Firms must be ready to demonstrate continuity in settlement processes, clear governance around new risks and robust incident response in tokenised markets.
However, the degree of adjustment will vary. Larger institutions already exposed to EU distributed ledger technology (DLT) pilot frameworks or digital asset custody regimes may find it easier to comply, as their governance, operational resilience and authentication requirements already overlap with Project Acacia’s emerging standards.
Smaller local PSPs and fintechs may face greater challenges, especially around compliance cost, onboarding delays and adapting to interoperability requirements.
The commercial impact cuts both ways. Compliance will require new investments in authentication, system upgrades and staff training. But it also creates opportunities such as stronger consumer trust, alignment with global standards and competitive positioning in cross-border settlement.
Firms that adapt quickly could be first movers in providing tokenised settlement services.
Going forward, firms should consider the following actions:
- Conduct a gap analysis against Project Acacia’s principles, focusing on access conditions, operational resilience and data requirements.
- Implement strong authentication and security upgrades to align with settlement system expectations.
- Review contracts and customer journeys to ensure settlement finality, disclosure of risks and continuity of service obligations.
- Benchmark operational resilience using incident response, third-party oversight and continuity plans against central bank expectations.
- Engage with the pilot project and prepare an implementation roadmap to close compliance gaps once final requirements take effect.
Firms that align early with Project Acacia’s principles will mitigate legal and operational risks, protect access to settlement systems and position themselves to benefit from the broader shift to tokenised money and interoperable global markets. A final report is expected in Q1 2026.
