The Reserve Bank of Australia (RBA) has officially entered the second phase of its digital currency exploration, launching a major trial to evaluate how digital money and tokenization could transform the country’s wholesale financial markets.
Dubbed Phase Two of Project Acacia, this initiative is a continuation of the joint effort between the RBA and the Digital Finance Cooperative Research Centre, first announced in November 2023.
Stablecoins, Deposit Tokens, and a Wholesale CBDC in Play
In a statement released on Thursday, the RBA confirmed that the trial will involve stablecoins, bank deposit tokens, and a pilot wholesale central bank digital currency (CBDC). These instruments will be used by a range of industry partners to test their practical applications in real-world financial scenarios.
A total of 24 use cases will be explored throughout the trial—19 involving real money transactions and five using simulated environments. The initiative will examine a wide spectrum of financial applications, including fixed income instruments, private markets, trade receivables, and carbon credit trading.
Major Banks and Fintechs Join the Pilot
The trial has attracted a wide-ranging group of participants, from local fintech startups to Australia’s largest financial institutions. Notably, three of the country’s “Big Four” banks—Commonwealth Bank (CBA), ANZ, and Westpac—are taking part in the pilot.
CBA revealed it will collaborate with JPMorgan to evaluate how digital currencies and on-chain collateral records could improve the repo market, a cornerstone of short-term liquidity and monetary policy operations.
Repo Market Identified as Key Use Case
Sophie Gilder, Managing Director of Blockchain and Digital Assets at CBA, said the repo market is a natural testing ground for tokenized finance. “The repo market, with its critical role in liquidity management and monetary policy implementation, represents an ideal starting point for this exploration,” Gilder noted.
Repos, or repurchase agreements, involve short-term borrowing and lending secured by government securities. One party sells a security and agrees to buy it back later at a higher price—a key mechanism for maintaining market liquidity.
Results Expected in 2026
The second phase of Project Acacia is scheduled to run for six months, with final findings expected to be published in Q1 2026. The results could shape how Australia proceeds with digital currency adoption in its institutional financial infrastructure.
