In the joint Project Acacia, Westpac Institutional Bank and Imperium Markets have integrated Chainlink, as part of efforts by the Reserve Bank of Australia (RBA) and Digital Finance CRC to explore new forms of digital money and their potential for creating a central bank digital currency for wholesale payments.

The RBA and DFCRC are investigating how digital currencies can be applied in real-world scenarios, with an emphasis on enhancing efficiency and reducing risks in the issuance, trading, clearing, and settlement of assets. This project aims to leverage tokenization as a key approach for these improvements.

Westpac’s PayTo Proof of Concept

Westpac is investing in its real-time payment capabilities, particularly with the launch of PayTo. This innovative digital service serves as an alternative to direct debit payments, offering features like visibility, control, transaction data, verified authorisation, secure storage, and cost-effectiveness.

The PayTo service operates on the New Payments Platform and relies on the banks’ existing exchange settlement accounts with the RBA for transaction settlements. The company’s proof of concept seeks to demonstrate how PayTo can facilitate large payment transactions in the wholesale banking sector, specifically for tokenized asset trades.

This initiative is being developed collaboratively with Imperium Markets and Chainlink, focusing on secure and compliant delivery of DvP (delivery-versus-payment) settlement. The project aims to complete its development over the coming months and support broader adoption of digital assets within institutional markets.