Australia is moving closer to tokenization, with the Reserve Bank of Australia (RBA) outlining its next phase.
At the ‘Beyond Tomorrow’ forum on March 25, Lieutenant Governor Brad Jones said the focus was shifting from “if” to “how” tokenization would be implemented.
He stated:
First, we now see the real question as not whether tokenization has a future in Australia’s financial system, but how.
How will tokenization be implemented?
Australia appeared positioned to advance tokenization across asset classes by focusing on enabling 24/7 trading.
on RBA websiteJones detailed the findings of Project Acacia, which predicts annual productivity gains of $16.7 billion.
The central bank noted that stablecoins and bank deposits can coexist within the system.
The pilot involved fixed income and investment funds, where transactions flowed through both central bank money and tokenized private money.
These include government bonds, corporate bonds, carbon credits and private loan funds.
However, the RBA confirmed it would work with the Council of Financial Regulators (CFR) and DFCRC to support implementation.
This coordination could accelerate Australia’s stablecoin market and broader digital economy.
Australian dollar (AUD) stablecoin market cap
Speaking of the market cap of Australian dollar stablecoins, it is relatively low, probably due to regulatory hurdles ahead of the RBA move.
Total market capitalization rose 1.86% this week to $10.5 million, according to DeFiLlama. In this lot, AUDD led with 98.73% dominance, equivalent to $10.35 million.
Others on the list are AUDm and AUDM, which account for 0.93% and 0.34% of the total cap respectively. The capitalization of the partnership was approximately 133 thousand dollars.
When narrowed down to AUDD, the analysis spanned five major blockchains.
The largest share of the upper limit is around 48% Star (XLM)equal to $5.2 million Ethereum (ETH) It came in second with 31% overall.
Base Chain held a 19% stake, representing $2 million. Meanwhile, less than 1% of its total share was short. Solana (Sun) and XRP Ledger.
Project Acacia’s projection, along with its implementation, has set a precedent for the growth of tokenization in the Australian market.
Increase in daily transactions
Tokenization was largely dependent on stablecoins.
For context, daily transactions for USD Coin (USDC) hit a 52-week high of $39.05 million. This represents a growth of 359% since March 2019.
However, the growth of the Australian dollar stablecoin market has not been close to that of US dollar-backed ones. Therefore, tokenization could spur growth in AUD-backed stablecoins and real-world assets (RWAs) in the country.
Final Summary
- The RBA is moving from asking whether tokenization is taking place to how it will be implemented.
- The market cap of AUD-backed stablecoins has remained relatively low, but regulations may change this trend.
