Northern Trust Backs Tokenised Finance Push in Australia via Project Acacia

Download IPFS

Northern Trust Corporation (NASDAQ: NTRS) is deepening its involvement in digital finance innovation through its participation in Project Acacia, a forward-looking initiative designed to explore how tokenised assets can be seamlessly integrated with existing financial systems. The project marks a significant step for Australia’s ambitions in advancing digital infrastructure and diversifying the economy beyond traditional banking models.

Project Acacia is a collaborative research effort led by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC). Northern Trust is leveraging its proprietary Northern Trust Carbon Ecosystem™ platform, which operates on a private blockchain, to manage the full lifecycle of digital carbon credits. The project’s primary focus is on enabling simulated delivery-versus-payment (DvP) settlements, a key feature that ensures secure, simultaneous exchange of tokenised carbon credits and fiat currency, a function essential for building trust in tokenised financial markets.

In addition to Northern Trust, global financial messaging leader Swift is playing a critical role in the initiative by linking digital assets with the traditional banking system, helping to facilitate reliable and transparent settlement processes. This alignment of legacy infrastructure with blockchain-based systems offers a glimpse into what a hybrid future of finance could look like, where innovation complements rather than disrupts existing institutions. The emphasis is on institutional-grade solutions that offer scalability, security, and regulatory alignment  traits often lacking in retail-focused cryptocurrency ventures.

Also participating in the project is Western Australia-based fintech firm ProspEx Group, which is introducing a novel capital-raising mechanism for mining companies through fractionalized royalty offerings. This model allows mining firms to raise funds by selling tokenized royalties tied to specific projects, a concept that could democratize investment in natural resources while ensuring traceability and investor confidence. As Australia positions itself as a hub for digital financial infrastructure, initiatives like Project Acacia stand in contrast to the heavy-handed regulatory tone often favored by the federal government. This project highlights the benefits of industry-led innovation and practical collaboration, rather than top-down mandates, in shaping the future of finance.