Northern Trust has partnered with Swift to explore how tokenised assets—specifically carbon credits—can be transacted using traditional commercial bank accounts in Australia. The initiative forms part of Project Acacia, a research programme led by the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre (DFCRC), aimed at investigating the role of digital money and infrastructure in supporting wholesale tokenised asset markets.
The project will simulate a delivery-versus-payment (DvP) settlement model involving a tokenised carbon credit and fiat currency. Northern Trust will act as custodian, using its Carbon Ecosystem™ platform to record, transfer, and settle digital carbon credits. Swift’s infrastructure will be used to coordinate between the asset and payment layers, demonstrating how tokenised transactions can operate within existing banking systems.
The Northern Trust Carbon Ecosystem™, launched in 2024, supports the end-to-end lifecycle of voluntary carbon credits using private ledger blockchain technology. It allows project developers and buyers to explore, transact, and retire credits on a single digital platform.
Justin Chapman, Group Head of Strategic Partnerships, Digital Assets and Financial Markets at Northern Trust, said: “The evolution of tokenised markets hinges on our ability to link emerging asset types with traditional infrastructure. Through Project Acacia, we aim to show that DvP settlement of tokenised assets is achievable today.”
The initiative builds on Northern Trust’s wider involvement in digital finance projects, including Project Guardian in Singapore, where it is piloting tokenised green bond reporting, and Project Ensemble in Hong Kong, which explores cross-border trading of carbon credits.
Angelo Calvitto, Head of Asia-Pacific at Northern Trust, highlighted Australia’s role in advancing real-world research: “This collaboration bridges tokenised platforms and regulated banking systems, demonstrating the region’s leadership in digital financial innovation.”
Kevin Wong, Chief Executive APAC at Swift, added: “Integrating tokenised assets with existing financial infrastructure is critical. This project shows how Swift can enable interoperability for secure and scalable adoption of tokenised finance.”
The initiative marks a significant step in demonstrating how traditional banking frameworks can support the integration of tokenised assets into global capital markets, potentially paving the way for broader adoption of digital finance in sustainable investing.
