Westpac Institutional Bank has partnered with Chainlink and Imperium Markets to implement blockchain-based tokenized asset settlement capabilities through Project Acacia.
The Chainlink Runtime Environment will orchestrate secure Delivery vs. Payment (DvP) settlement of tokenized assets across blockchain markets and Australia’s existing PayTo domestic payments system.
Australia’s central bank has estimated that tokenization could save asset issuers up to AUD $12 billion annually in Australian markets.
The initiative builds on the RBA’s broader six-month pilot program announced in July, which selected 24 industry participants to conduct 19 real-money transactions and five proof-of-concept simulations across multiple asset classes.
Westpac Extends PayTo Infrastructure for Tokenized Asset Transactions
Westpac’s proof of concept seeks to demonstrate that the existing PayTo infrastructure can handle the settlement and clearing of large wholesale banking payments required for tokenized asset transactions.
PayTo, launched by Westpac in 2024, operates as a digital-first alternative to direct debit payments that enables real-time transactions with enhanced visibility and control for customers.
The system settles transactions using banks’ existing exchange settlement accounts with the RBA while offering rich transaction data, verified authorization, and secure storage capabilities.
Jeff Byrne, Managing Director of Global Transaction Services at Westpac Institutional Bank, said the bank is “helping the RBA explore what digital currencies could look like in the real world, while giving our customers access to new payment options safely and securely.”
Beyond the immediate settlement capabilities, the project extends Westpac’s PayTo capabilities to emerging technologies such as asset tokenization while demonstrating ways to unlock new value while protecting customers.
The proof of concept also provides Westpac with an opportunity to test post-quantum cryptography in financial systems, using advanced encryption algorithms designed to resist potential future quantum computer attacks.
David Walker, Westpac’s Chief Technology Officer, described the initiative as “a real-world opportunity to learn and create something that will be incredibly important in the future, and something we might need to apply at scale.”
Westpac maintains a long-term equity investment in Australian cybersecurity company QuintessenceLabs, which has developed quantum-enhanced cryptography solutions already deployed in defense and large organization applications.
Walker stated that “creating the next generation of payments architecture requires the strategic involvement of all the banks, telcos, retailers and governments working together.”
The Australian Securities and Investments Commission has granted regulatory relief to facilitate the testing, with project findings expected in the first quarter of 2026.
Global Financial Institutions Accelerate Blockchain Infrastructure Development
Chainlink has positioned itself at the center of a potential $260 trillion market opportunity through partnerships with major financial institutions to unlock the untokenized assets market via its Cross-Chain Interoperability Protocol.
Earlier this year, Chainlink partnered with Abu Dhabi Global Market to develop blockchain standards and explore tokenization frameworks within regulated environments.
RedStone’s market analysis also reveals that the tokenized real-world assets market reached $24.31 billion by June 2025, driven by a 260% surge from $8.6 billion at the start of the year, with private credit claiming more than half of the total market value at $14 billion.
Notably, Australia’s approach contrasts with the restrictive stances some of its major banks have taken toward crypto platforms, with the National Australia Bank blocking payments to certain crypto exchanges in 2023, citing concerns about scams.
Project Acacia’s focus on regulated institutional applications could generate AU$19 billion annually in economic gains, according to Professor Talis Putnins from the Digital Finance Cooperative Research Centre.
Organizers have described Australia’s real-money settlement testing on third-party platforms as a world-first for the country in the digital finance industry.
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