Banking Circle supports Reserve Bank of Australia’s Project Acacia in the first-ever issuance of a central bank digital currency on a public blockchain
Banking Circle has supported Australia’s first live repo transaction using a tokenised Australian Government Bond and wholesale CBDC issued by the Reserve Bank of Australia. „The transaction was completed as part of Project Acacia, a research project led by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) exploring how different forms of digital money and associated infrastructure could support the development of wholesale tokenised asset markets in Australia.” – according to the press release.
„The use case, led by Canvas, saw an Australian Government Bond tokenised by Canvas Capital and pledged as collateral in a live repo transaction. The transaction was settled on Canvas Connect, Canvas’s privacy-powered blockchain designed for institutional financial transactions, using wholesale CBDC issued by the RBA for the purposes of Project Acacia. Banking Circle provided Exchange Settlement Account-linked settlement access. In this role, Banking Circle received fiat from Canvas—while conducting the necessary due diligence—and transferred the funds to the RBA. Subsequently, the RBA minted the CBDC directly onto the Canvas Connect platform, effectively bridging conventional banking infrastructure and central bank settlement with blockchain-based financial market infrastructure.” – the company explained.
Unlike simulated proof-of-concept transactions, the use case involved real participants, live market infrastructure, tokenised sovereign debt and live wholesale CBDC issued as a direct legal claim on the Reserve Bank of Australia.
This engagement builds on Banking Circle’s acquisition of Australian Settlements Limited (ASL) earlier this year, which brought together ASL’s ADI licence and domestic settlement expertise with Banking Circle’s global payments infrastructure. The acquisition has provided a solid launch pad for Banking Circle, demonstrated by how quickly it was able to participate in innovative initiatives such as Project Acacia.
Strengthening regulated connectivity for emerging digital money frameworks
Banking Circle supports global financial institutions with real-time, secure, and compliant access to domestic and international payment rails. As tokenised markets evolve, the company is exploring how its regulated infrastructure may be able to support future models of digital money, including enhanced settlement workflows for financial institutions.
Piers Cracknell, Chief Commercial Officer at Banking Circle (Australia), said: “Banking Circle is committed to enabling safe, efficient, and compliant access to next-generation financial rails. Participating in Project Acacia allows us to contribute practical insights into how regulated institutions may interface with emerging forms of digital money in wholesale markets.
“Supporting the settlement of Australia’s first live repo transaction using a tokenised Australian Government Bond and wholesale CBDC demonstrates how conventional banking infrastructure and central bank settlement access can connect with blockchain-based financial market infrastructure in a secure and compliant way. The next generation of financial rails will enable money and assets to move globally, instantly and securely. Our goal is to be the bank that powers that transition.”
Canvas Digital CEO David Lavecky said the milestone represented a significant step forward for Australia’s financial markets.
“Canvas is extremely proud to have completed Australia’s first live repo transactions using a tokenised Australian Government Bond and wholesale CBDC issued by the RBA as part of Project Acacia,” Mr Lavecky said. “Australia’s repo market plays a central role in wholesale funding and market liquidity. These transactions show that tokenised collateral, digital custody, banking infrastructure and digital central bank money can work together in a live institutional market environment.”
Mr Lavecky said the transactions highlighted the potential for tokenisation to modernise Australia’s wholesale markets.
“Tokenised government bonds and wholesale digital central bank money have the potential to make Australia’s wholesale financial markets faster, more efficient and lower-friction. This aligns with the DFCRC’s March report findings that digital finance innovation enables ‘better markets’ that could unlock $10 billion in annual economic gains for Australia,” he said.
Watch Canvas CEO Daniel Lavecky talk about this milestone with AusBiz:
