Australia Central Bank Backs Tokenization With $24B Efficiency Potential

RBA shifts toward tokenization rollout, seeing $24B gains as stablecoins and bank tokens take distinct market roles.

Tokenization is gaining traction in Australia, and the Reserve Bank says the debate is changing. In a Wednesday speech, Assistant Governor Brad Jones described Project Acacia, a trial of tokenized assets and digital settlement “money.” The bank estimates $24 billion in annual efficiency gains, with stablecoins and bank deposit tokens likely serving different markets.

RBA Highlights $24B Gains as Tokenization Strategy Moves Forward

Australia’s central bank is moving from exploring tokenization to planning its practical use. In a Wednesday speech, Reserve Bank of Australia Assistant Governor Brad Jones framed Project Acacia as proof that the question now becomes “how,” not “if.”

He added that stablecoins and bank-issued deposit tokens could serve different but distinct roles within the system. According to Project Acacia findings, tokenization could deliver around $24 billion in annual efficiency gains to the Australian economy.

The potential impact could be even higher if new markets develop. Jones noted that while risks still require careful review, the central bank now has sufficient evidence to shift toward practical implementation. He said any rollout will need to maintain overall financial stability.

Project Acacia examined 20 use cases across government bonds, corporate bonds, repos, and investment funds. The work also tested settlement through four forms of “tokenized money”: These include wholesale CBDC, exchange settlement account balances, stablecoins, and bank deposit tokens.

The trial results suggested that tokenized private money could be used across markets. The assistant governor said stablecoins are likely to serve smaller, emerging segments. On the other hand, bank deposit tokens could take a larger role in more established markets due to their regulatory backing and access to central bank liquidity.

According to the speech, a notable part of the project involved issuing a wholesale CBDC onto external ledgers. That step aimed to examine both efficiency and safety questions when wholesale money sits outside traditional systems.

Project Acacia Highlights Structural Barriers in Australia’s Wholesale Markets

Brad Jones said Acacia’s findings were broad, pointing to other avenues to make Australia’s wholesale financial market more dynamic. The speech also identified hurdles in the wholesale sector. Jones cited entrenched network effects that limit competition.

He added risk aversion tied to legal and regulatory uncertainty, along with coordination failures that slow strategic planning. To address these barriers, the Reserve Bank of Australia plans to work with regulators, the DFCRC, and industry participants.

The plan includes a new digital financial market infrastructure sandbox, designed as a stage-gated space for testing tokenized assets, money, and settlement arrangements. The RBA also plans to review access policies for exchange settlement accounts after pending payment service provider licensing reforms clear parliament.

Jones noted that industry views on wholesale CBDC remain mixed. He said firms often describe it as “potentially helpful, but far from essential.” Still, he pointed to growing US activity in tokenized repo markets, where daily activity is nearing US$400 billion.