Clarity is the prerequisite. Sandbox runway is the catalyst.
Tokenisation raises issues current frameworks didn't anticipate - especially in post-trade. Acacia identified specific legal and regulatory areas needing attention, and surfaced clear feedback that time-bound regulatory relief isn't enough on its own.
Where the work is.
Legal structure of money
- ESAs - contractual claims, free of counterparty risk.
- wCBDC - pilot under deed poll; production form still TBD.
- Stablecoins - contractual redemption claims; new tokenised SVF regime incoming.
- Deposit tokens - could mirror deposits; FCS coverage requires explicit declaration.
Legal structure of assets
- Digital twin dominant; digital native needs clarity on registers + finality.
- Digital Assets Framework Bill passed Apr 2026, commences Apr 2027 - introduces TCPs.
- MLETR implementation by AGD in progress - would enable digitised trade records as bearer instruments.
- Industry-standard contracts (à la ISDA Master, GMRA) could underpin cross-jurisdiction adoption.
Settlement finality
- Technical finality - depends on consensus mechanism (deterministic vs probabilistic).
- Legal finality - needs operating rules establishing record authority.
- PSNA 'approved RTGS systems' protect against the zero-hour rule - currently RITS, Austraclear, CHESS RTGS.
- DLT platforms would need PSNA approval for similar protection.
Market-infrastructure regulation
- DLT tightly integrates trading + settlement - current licensing regimes split them.
- Public-DLT 'no clear operator' raises perimeter questions.
- Some use cases interposed regulated entities (Fireblocks → ABE) to preserve operator clarity.
- Regulators open to engagement; additional ASIC guidance may follow.
Financial products & services
- ASIC Info Sheet 225 (Oct 2025) clarified digital-asset financial-product treatment.
- Incoming reforms add a 'look through' exemption for digital twins under TCPs.
- Specific characterisation (security / derivative / MIS / non-cash payment) still matters.
Prudential treatment
- Banks: awaiting clarity on Basel crypto-asset standard timing - affects capital + liquidity charges.
- Stress-testing for DLT-specific risks (network congestion, market fragmentation).
- Superannuation funds: valuation basis + operational risk questions for APRA.
What's working overseas.
Different jurisdictions have used different regulatory levers, but a few features recur: longer timeframes, broad engagement, convening of market participants, and availability of safe assets (tokenised gov bonds, central bank money) for experimentation.
Project Guardian
Multi-asset public-private initiative launched Jun 2022. Industry-published Guardian Fixed Income Framework + Guardian Funds Framework. Cross-border policymaker coordination.
HKMA Supervisory Incubator for DLT
Launched Jan 2025. A 'one-stop' supervisory platform letting banks iteratively validate risk controls in live trials. Supports Project Ensemble (tokenised deposits → wCBDC).
Digital Securities Sandbox
4-gate 'glidepath' - testing → live with limits → scaling → full authorisation outside the DSS. 16 applicants through Gate 1 by report date. Will host the DIGIT (Digital Gilt) pilot.
What good 'commercialisation pathway' regimes share.
Longer timeframes for experimentation
Initiatives spanning several years - or open-ended - give larger incumbents the 'runway' their internal compliance processes need.
Regular, broad engagement
Ongoing two-way learning between regulated entities and supervisors. Acacia's IAG was praised as a model for this.
Convening of market participants
Multi-party coordination on lifecycle issues - issuance, servicing, trading, settlement - where interdependencies are strong.
Availability of safe assets
Tokenised government bonds and central bank money provide credible anchors for experimentation in systemic markets.
Build with rem