Australia is shifting tokenization from policy discussion to market execution. Reserve Bank of Australia Assistant Governor Brad Jones said the core question is no longer whether tokenization has value, but how it can be integrated into existing financial systems in a way that works at scale.
That change in focus is backed by a clear economic case. Analysis from the Digital Finance Cooperative Research Centre estimates tokenization could generate about A$24 billion in annual efficiency gains across Australia’s financial system. The gains are tied to faster settlement and reduced dependence on intermediaries. For institutions, tokenization is being framed less as a future concept and more as an infrastructure upgrade with measurable impact.
Project Acacia tested tokenized assets across wholesale market instruments
Project Acacia added detail to that picture by examining how tokenized assets can operate in wholesale markets. The study covered government bonds, corporate bonds and investment funds. Settlement trials also used multiple forms of digital money, showing that tokenized structures can be applied across different market designs rather than a single model.
There are still obstacles. Network effects remain deeply built into wholesale market structure, limiting competition and slowing the shift to new systems. Regulatory uncertainty is also holding institutions back as they weigh large-scale deployment. Those constraints are shaping the pace of adoption in practical terms.
Stablecoins and deposit tokens may serve different market segments
Jones said stablecoins and bank deposit tokens are likely to take on different roles depending on market conditions. Stablecoins may fit smaller or emerging markets where flexibility matters more. Deposit tokens, by contrast, may be better suited to larger markets because of regulatory support and access to central bank liquidity.
That suggests tokenized money will not develop through a single format. Market size, regulation and liquidity access will influence which instruments gain traction.
RBA plans sandbox testing and closer regulatory coordination
To deal with current frictions, the Reserve Bank of Australia plans to work more closely with regulators and industry participants. A dedicated sandbox is expected to support controlled testing of tokenized assets, settlement systems and related financial infrastructure. The aim is to reduce uncertainty while keeping experimentation inside a regulated setting.
Authorities also plan to review access to exchange settlement accounts as regulatory reforms advance. Industry groups are expected to focus on interoperability between deposit tokens issued by different banks. Those efforts point to a more coordinated framework for digital financial infrastructure.
Wholesale CBDC not seen as a requirement for adoption
Jones also said a wholesale central bank digital currency is not essential for tokenization to move forward. Private-sector models are already gaining real-world use in other jurisdictions. In the United States, tokenized repo markets are processing large daily volumes, offering an example of how these systems are moving beyond pilot-stage activity.
Australia’s latest stance shows a clear move from experimentation toward implementation. The speed of rollout now depends on coordination, interoperability and how quickly market participants are prepared to connect to the new framework.