The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) released the final report for Project Acacia on May 18, 2026, revealing that widespread adoption of tokenized asset markets remains dependent on central bank-backed settlement money.
The multi-year research initiative, which concluded its experimentation phase in March, demonstrated that while distributed ledger technology (DLT) can slash costs and improve market speed, the financial industry still requires the safety and liquidity of traditional exchange settlement accounts or a wholesale central bank digital currency (wCBDC) to finalize high-value transactions.
Project Acacia tested 20 different use cases for wholesale tokenized assets, ranging from government bonds to mining royalties. Of these, 12 were live pilots involving real money and assets, while eight were conducted as proofs of concept. The project received support from major regulatory bodies including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). The findings suggest a clear path toward market modernization, provided the “settlement leg” of these digital trades is anchored by trusted, sovereign-backed assets.
Economic impact and the $24 billion efficiency prize
The research suggests the stakes for Australia’s financial infrastructure are remarkably high. The DFCRC estimates that successfully integrating these digital systems could yield $24 billion in annual economic gains for the country. This value stems primarily from reduced counterparty risk, faster settlement cycles, and the elimination of manual reconciliations that currently plague traditional wholesale markets. As utility shifts dictate 2026 market trends, the focus has moved from speculative assets to infrastructure that solves real-world frictions in capital allocation.
By moving assets like fixed-income instruments onto a blockchain, the RBA found that the “delivery” of the asset can be perfectly synchronized with the “payment” through smart contracts. This “atomic settlement” prevents situations where one party delivers an asset but the other fails to pay. However, the report is firm in its stance that private stablecoins or commercial bank tokens are currently viewed as secondary to central bank money for the final settlement of these large-scale institutional trades.
Key participants and the diverse technology stack
The initiative saw an unprecedented level of collaboration between Australia’s “Big Four” banks and global technology providers. Financial institutions including Australia and New Zealand Banking Group (ANZ) and Commonwealth Bank of Australia (CBA) worked alongside fintechs like Chainlink, Fireblocks, and Ripple. These participants tested tokenization across multiple blockchains, ensuring the research wasn’t limited to a single software environment.
The technological diversity was a hallmark of Project Acacia. Transactions were processed across various networks, including a private network built with Hedera technology called HashSphere, as well as the public XRP Ledger, Ethereum, and the Australian-born Redbelly network. This variety proved that tokenized assets can exist across different ecosystems, but highlighted the need for interoperability standards to prevent the “siloing” of liquidity.
For instance, Zerocap demonstrated a successful lifecycle for a tokenized Australian Government bond, showing that even the most conservative asset classes are ready for digital migration.
Settlement methods and the role of stablecoins
While central bank money remained the gold standard during the trials, the project also experimented with several other forms of digital liquidity. These included traditional RBA exchange settlement account (ESA) balances, pilot wCBDCs, and tokenized commercial bank deposits. This multi-pronged approach allowed researchers to see how different forms of “cash on ledger” interacted with tokenized securities.
Private stablecoins also played a role in the experimentation. Pilot tokens such as AUDM, AUDF, and AUDD were utilized to move value, alongside the recently launched RLUSD. While these assets provided the necessary programmability for automated trades, the RBA noted that for systemic stability, a central bank-backed digital currency remains the preferred settlement asset for the wholesale tier of the market. This reflects a broader global trend where new liquidity surges are being met with calls for tighter regulatory frameworks and state-backed digital alternatives.
Future outlook for Australian wholesale markets
The conclusion of Project Acacia marks the end of the research phase and the beginning of a policy-shaping period for the Australian Treasury. The Industry Advisory Group, which held its eleventh and final meeting on March 31, 2026, has provided a roadmap for how the government can support the transition to DLT-based markets. The focus now shifts to whether the RBA will commit to a permanent wholesale CBDC or if existing exchange settlement accounts can be adapted for 24/7 blockchain environments.
For investors and financial institutions, the message is clear: the technology is ready, but the legal and settlement frameworks must catch up. The $24 billion in projected annual gains will remain out of reach until there is a standardized, regulated way to pay for tokenized assets on-chain. As Australia moves toward this digital future, the lessons learned from Project Acacia will likely serve as a blueprint for other G20 nations looking to modernize their own capital markets without sacrificing the safety of central bank oversight.