#Australia #Sydney #Fireblocks #Project Acacia #CBDC

Fireblocks Collaborates on Project Acacia

Fireblocks, a prominent player in providing infrastructure solutions for digital assets, has recently announced its collaboration with Project Acacia. This initiative is spearheaded by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC), aiming to investigate how digital currencies—including central bank digital currencies (CBDCs), stablecoins, and deposit tokens—can be employed to foster the development of wholesale tokenised asset markets within Australia.

The project is structured in two distinct phases. The initial phase, which reached completion in 2024, was centered around conceptual research and resulted in the establishment of a 'design space' for potential settlement models that incorporate various forms of digital money. Currently, the second phase is in progress, where the focus has shifted to actively developing and testing prototypes of chosen models intended for the settlement of transactions involving tokenised assets that align with industry-specific use cases.

Fireblocks has submitted a proposal that was conditionally chosen for practical experimentation in the second phase of this project. This proposal was developed alongside several reputable companies, including NotCentralised, Redbelly Network, Australian Bond Exchange, and Fasanara Capital. The objective of this initiative is to showcase how a wholesale CBDC can be utilized to diminish counterparty risk through a method known as delivery-versus-payment (DvP) settlement concerning tokenised securities. This model also seeks to guarantee the unity of money in relation to various stablecoins and deposit tokens held by the parties engaged in the transaction.

Key objectives of this use case include:

• - Implementing seamless workflows for the issuance, trading, and atomic settlement of tokenised securities via a permissioned public blockchain.
• - Demonstrating the advantages of integrating central bank-issued digital currency with tokenised forms of private money, such as deposit tokens and stablecoins.
• - Enhancing efficiency while minimizing counterparty risk, along with promoting composability through programmable, on-chain settlement infrastructure.

The project initially commenced as a proof of concept, utilizing test networks and simulated assets. Depending on the outcomes and regulatory feedback received during this phase, there is potential for the project to advance towards real-world transaction pilots.

Michael Shaulov, the CEO of Fireblocks, expressed pride in contributing to this significant research initiative through Project Acacia, emphasizing that the collaboration's goal is to explore innovative frameworks that will shape the future of transactions within tokenised asset markets. Additionally, he conveyed gratitude for the opportunity to work alongside regulators and industry leaders to test infrastructures that could boost the efficiency and resilience of Australia's financial system.

Arturo Rodriguez, CEO of NotCentralised, also commented on the crucial role Project Acacia plays in developing open capital markets. He noted that through this collaboration, they are creating the first end-to-end securitised flow that intricately links capital markets with the real economy via blockchain technology. Moreover, he expressed appreciation for the chance to design and structure the first privacy-enhanced securitisation flow on a public blockchain employing a CBDC.

Moreover, Alan Burt, Chairman of Redbelly Network, highlighted that it is the sole public blockchain chosen to foster a wholesale CBDC for experimental work within Project Acacia. He stated that CBDCs are poised to become a fundamental part of modern capital markets, facilitating the interoperability of stablecoins and deposit tokens. He further asserted that CBDCs are underpinned by sovereign counterparty risk that is nearly zero, contrasting with stablecoins, and that their blockchain's deterministic finality eradicates any settlement risk.

Francesco Filia, CEO of Fasanara Capital, conveyed excitement regarding the collaboration with various industry experts and regulators as part of Project Acacia. He emphasized the collaborative effort's significance in shaping innovative infrastructure capable of meeting the evolving requirements of wholesale markets.

The Project Acacia initiative is supervised by a Steering Committee that includes senior officials from the RBA, DFCRC, the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA), and Treasury. Varun Paul, Senior Director of Financial Markets at Fireblocks, is actively participating in an Industry Advisory Group established to provide comprehensive feedback throughout the initiative. It is anticipated that a report outlining the project's findings will be published by the RBA and DFCRC towards the end of 2025.