Catenaa, Wednesday, March 25, 2026- The Reserve Bank of Australia said Wednesday that stablecoins and bank-issued deposit tokens can coexist as it advances a tokenization push projected to unlock about $17 billion in annual gains, marking a shift from debating the technology to implementing it across wholesale markets.
Assistant Governor Brad Jones said findings from Project Acacia show tokenization is now a question of execution rather than feasibility, with use cases spanning government bonds, corporate bonds, repos and investment funds. The study tested settlement using four forms of money, including wholesale central bank digital currency, exchange settlement balances, stablecoins and deposit tokens.
Jones said stablecoins may serve smaller or emerging markets, while deposit tokens issued by banks could anchor larger, regulated financial systems due to their links to central bank liquidity and prudential oversight. The central bank also flagged structural barriers slowing adoption, including entrenched network effects, legal uncertainty and coordination gaps among institutions.
To address these issues, the RBA plans to launch a digital financial infrastructure sandbox in partnership with the Council of Financial Regulators and the Digital Finance Cooperative Research Centre. The sandbox will allow staged testing of tokenized assets and settlement systems under regulatory supervision.
Officials said further reforms will include reviewing access to exchange settlement accounts and forming a joint regulator-industry advisory group to tackle legal and operational challenges. An expanded deposit token working group will also focus on interoperability between banks.
Industry feedback cited in the report suggests a wholesale central bank digital currency could help but is not required for tokenized markets to scale, pointing to developments in the US where tokenized repo activity has grown rapidly.
Tokenization is gaining traction across global financial markets as institutions seek faster settlement, lower costs and broader access to capital. In recent years, major firms including BlackRock and JPMorgan have launched tokenized funds and blockchain-based settlement systems, signaling a shift toward integrating distributed ledger technology into traditional finance.
The RBA’s position could accelerate institutional adoption in Australia by clarifying how different forms of digital money can coexist. It may also encourage banks to issue deposit tokens while allowing stablecoin providers to target niche or emerging markets, shaping a dual-track ecosystem.
Analysts say the coexistence model reflects a pragmatic regulatory stance that balances innovation with financial stability. Market participants view deposit tokens as more scalable within regulated systems, while stablecoins remain useful for cross-border and decentralized applications.
Tokenization refers to converting real-world assets into digital tokens on blockchain networks, enabling near-instant settlement and programmable ownership. Global estimates suggest the tokenized asset market could reach trillions of dollars over the next decade, driven by demand for efficiency and the expansion of digital financial infrastructure. Early pilots in repo markets and funds have already demonstrated operational gains, prompting central banks worldwide to explore frameworks that support both public and private forms of digital money.
