In a what has been described as a first for Australia’s financial sector, Forte Tech Solutions has successfully completed the country’s first tokenized investment in government bonds, executing a US$2 million (AU$3.07 million) pilot under the Reserve Bank of Australia’s (RBA) Project Acacia. The achievement is seen as a significant step toward integrating blockchain-based infrastructure into wholesale financial markets.
According to a report, Project Acacia is spearheaded by the RBA in collaboration with the Digital Finance Cooperative Research Centre (DFCRC). It is supported by key regulatory bodies, including the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA), and the Treasury. The initiative aims to explore how tokenization and digital money—such as stablecoins and wholesale central bank digital currencies (CBDCs)—can revolutionize settlement systems and enhance market efficiency.
Partnering with Coinspot, Forte Tech Solutions led the initial bond tokenization and implemented a Delivery-versus-Payment (DvP) settlement framework using its AUDF stablecoin. This framework enables on-chain trading with near-instant settlement and significantly reduced transaction costs. The company revealed that its stablecoin currently facilitates approximately $200 million in cross-border payments each month.
Fadi Kassis, founder of Forte Tech Solutions and AUDF, emphasized the transformative potential of the initiative: “Project Acacia is an important step in shaping the future of financial markets, and we are proud to be at the forefront of this transformation,” he said. “This pilot demonstrates how traditional instruments like Australian Government Bonds can evolve into 24/7 digital markets, improving transparency and drastically reducing settlement times.”
Forte’s pilot is one of over 20 use cases being tested under Project Acacia, which includes contributions from major banks like ANZ and Westpac, as well as fintech innovators such as Fireblocks and Canvas Digital. The pilots span a wide range of asset classes, from fixed income instruments to carbon credits, and will continue over the next six months.
- What is Australia’s first tokenized government bond investment? Forte Tech Solutions completed Australia’s initial tokenization of $2 million in government bonds as part of the Reserve Bank of Australia’s Project Acacia.
- What is the goal of the RBA’s Project Acacia? The RBA, with ASIC and APRA support, is exploring how tokenization, stablecoins, and wholesale CBDCs can revolutionize Australia’s financial settlement systems.
- How did Forte Tech Solutions settle the tokenized bond in Australia? Forte Tech used its AUDF stablecoin to implement a Delivery-versus-Payment (DvP) settlement framework for near-instant, on-chain trading.
- What benefits does this tokenization pilot bring to Australian markets? The pilot demonstrates that traditional Australian Government Bonds can evolve into 24/7 digital markets with improved transparency and drastically reduced settlement times.
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