Australia Unveils Bold Digital Asset Strategy Inspired by EU and Singapore

Australia is taking a major step toward integrating digital assets into its financial ecosystem, unveiling a comprehensive government-wide strategy inspired by frameworks in the EU and Singapore. In a new white paper, the Australian Treasury outlines plans to embrace tokenization, real-world assets (RWAs), and central bank digital currencies (CBDCs) to modernize its economy.

While ruling out a retail CBDC for now, the government supports a wholesale CBDC model and tokenized settlement infrastructure to enhance market efficiency, reduce costs, and broaden access to traditionally illiquid assets. Pilot programs involving tokenized money, including stablecoins, will be launched by the Treasury, the Reserve Bank of Australia, and the Australian Securities and Investments Commission to test real-world applications in wholesale financial markets.

The white paper highlights how tokenized markets could streamline trading, minimize settlement risks, reduce intermediaries, and automate processes. To support this shift, Australia is introducing a new regulatory framework for crypto exchanges, which will be classified as Digital Asset Platforms (DAPs). These platforms must adhere to strict financial standards, including capital requirements, disclosures, and third-party custody of client assets.

The government also aims to tackle industry concerns around de-banking by establishing clear licensing structures that provide more clarity and risk management support to banking partners. This aligns with global conversations on fair access to banking services for crypto firms, echoing efforts like the U.S. FIRM Act.

With this forward-thinking policy shift, Australia positions itself as a leader in digital finance innovation, promoting responsible growth while fostering greater financial inclusion and efficiency. As tokenization continues to reshape global markets, Australia’s proactive stance could serve as a model for other nations exploring blockchain and digital asset integration.