Northern Trust Corp (NASDAQ:NTRS) has announced a collaboration with Swift to explore the integration of tokenised assets, including carbon credits, with traditional banking infrastructure as part of Project Acacia.
The initiative seeks to showcase how innovations in digital assets can integrate with the fundamental structures of the global financial system, helping to accelerate the growth of tokenised finance in Australia.
A step forward for tokenised asset settlement
As a key participant in Project Acacia — a research initiative led by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) — Northern Trust is using its proprietary Northern Trust Carbon Ecosystem™ to manage the end-to-end lifecycle of digital carbon credits.
The platform, which leverages private-ledger digital blockchain technology, will facilitate a simulated delivery-versus-payment (DvP) settlement of tokenised carbon credits and fiat currency.
Swift’s infrastructure will coordinate the transactions, linking the digital assets with traditional banking systems to enable simultaneous settlement.
Project Acacia is intended to support the development of wholesale tokenised asset markets in Australia, as it explores the future of digital currencies and tokenised assets.
Other participants include Perth-based fintech startup ProspEx Group, which announced its selection for Project Acacia on July 11, with plans to use its innovative digital platform to offer mining companies a new way to raise capital through fractionalised royalties tied to individual mining projects.
Read more: ProspEx Group selected for RBA’s Project Acacia, offering new capital-raising option for miners
Demonstrating interoperability with traditional financial infrastructure
The goal of the Northern Trust initiative is to demonstrate that traditional commercial banking infrastructure can support the settlement of tokenised assets in real-time. By showcasing interoperability between tokenised ecosystems and existing financial infrastructure, it aims to lay the groundwork for the broader adoption of digital assets in capital markets.
“The evolution of tokenised markets hinges on our ability to link emerging asset types with traditional infrastructure,” said Justin Chapman, group head of strategic partnerships, digital assets and financial markets at Northern Trust.
“By collaborating on Project Acacia, Northern Trust is helping to prove that delivery-versus-payment of tokenised assets is not a future ideal but a present-day reality.”
Angelo Calvitto, head of Asia-Pacific at Northern Trust, said the collaboration demonstrates the company’s regional leadership in advancing digital innovation.
“Australia is playing an important role in advancing real-world research, and we’re proud to contribute our expertise to a project that bridges tokenised asset platforms with banking systems in a regulated environment,” he said.
Bridging the gap between tokenised and traditional markets
The potential for integrating tokenised assets into established financial systems is seen as crucial for unlocking new opportunities in sustainable finance, according to Northern Trust. With carbon markets growing rapidly, there is a need for platforms that can support the transaction and retirement of voluntary carbon credits, providing a digital infrastructure that supports the growing demand for these assets.
“The ability to integrate tokenised assets with existing financial infrastructure is critical to unlocking their full potential,” said Kevin Wong, chief executive APAC at Swift.
“This initiative demonstrates how Swift’s infrastructure can support the adoption of digital assets such as carbon credits in a delivery-versus-payment model,” he added. “By enabling interoperability between existing banking infrastructures and emerging digital ecosystems, we’re helping to lay the groundwork for scalable, secure, and sustainable adoption of tokenised finance across the globe.”