The Reserve Bank of Australia is moving to establish the legal and market infrastructure required for tokenized asset markets, as regulators begin coordinating on rules that could allow such products to operate at scale within the broader financial system. The shift follows the conclusion of the bank’s Project Acacia research program, which examined tokenized assets and money. Speaking on Tuesday, RBA Assistant Governor Brad Jones said the question was no longer whether tokenization had a future in Australia’s financial system, but how it would be implemented.
The central bank announced it would work with other regulators and industry participants on a new digital market infrastructure sandbox designed to test tokenized assets, tokenized money, and settlement systems over a longer-term horizon. Unlike short-term pilot programs, the sandbox is intended to support commercialization. The RBA described this as a meaningful step beyond exploratory research toward building real market capacity.
The bank is also coordinating with other agencies on the legal and regulatory framework governing tokenized markets, covering how tokenized assets are classified, how settlement finality operates, and how new platforms would be licensed and supervised. This regulatory coordination is seen by industry participants as the critical step needed to move tokenized assets from controlled pilots into functioning markets. The push comes as lawmakers work to bring crypto platforms and tokenized custody services under Australia’s existing financial-services regime, requiring firms that hold client tokens to obtain licenses and meet asset-safeguarding standards.
Paul Stonham, chief commercial officer at Australian crypto exchange BTC Markets and a member of Project Acacia’s advisory group, described the program as a turning point. He said the RBA’s decision to move from exploratory pilots to a longer-term, stage-gated sandbox environment signals genuine institutional commitment to making tokenized finance work in Australia, rather than simply studying it. Stonham made the remarks in comments provided to Decrypt.
Stonham identified the coordination now underway between the RBA, the Australian Securities and Investments Commission, and AUSTRAC as the most significant development, saying it directly addresses the legal and regulatory uncertainty that has limited institutional participation to date. He also argued that regulated digital asset exchanges are likely to play a central role in tokenized markets, contending that tokenized assets will need to trade on transparent, centrally managed order books operated by licensed platforms in order to attract larger institutional players.
The RBA estimated that tokenization could improve efficiency and reduce risk in wholesale markets, particularly where tokenized assets and money can be settled on synchronized systems. The bank put the potential economic benefit to Australia at approximately 24 billion Australian dollars, equivalent to roughly US$16.6 billion, per year. Further work, the bank said, would focus on settlement infrastructure, tokenized bank deposits, stablecoins, and the potential role of a wholesale central bank digital currency.
Originally reported by Decrypt.
