CSC tests waters on digital assets with Northern Trust

Commonwealth Superannuation Corporation (CSC), the super fund for public servants and the defence force, has signed a Memorandum of Understanding (MoU) with Northern Trust to advance digital investment infrastructure across institutional markets.

The MoU is focused on emerging technologies including tokenisation, digital assets, and enhanced digital cash capabilities, while exploring opportunities to improve transparency, operational efficiency, and connectivity throughout the institutional investment processes.

The organisations also intend to establish a framework to exchange insights on developments in digital financial markets, identify "new areas" of collaboration and contribute to the advancement of institutional adoption of digital investment solutions.

The partnership builds on the previous collaboration of both organisations in Project Acacia, where the two will also explore regulated settlement assets and other digital payment mechanisms, including liquidity management, settlement efficiency, and interoperability between traditional finance and emerging digital asset ecosystems, they said.

CSC chief of investment services Paul Abraham said the fund is eager to enhance its understanding of the innovative sector.

"As long-term stewards of retirement outcomes for our members, CSC continues to explore innovations that have the potential to enhance efficiency, transparency, and resilience across investment operation," Abraham said.

"This collaboration with Northern Trust provides an opportunity to deepen our understanding of emerging technologies and their practical applications within institutional investment markets."

Northern Trust group head of strategic partnerships, digital assets and financial markets Justin Chapman said: "The evolution of digital assets, tokenisation and digital money presents significant opportunities to modernise investment infrastructure and create more connected financial ecosystems."

"We are pleased to extend our collaboration with CSC as we explore how these innovations can support the future of institutional investing."

It comes as AMP Super ventured into Bitcoin in recent years, becoming the first super fund to invest in digital assets, like cryptocurrencies.

Although cryptocurrency is not yet classified as a financial product, other digital assets like stablecoins, wrapped tokens, tokenised securities and digital asset wallets were labelled as financial products by ASIC last year.

Further, to pledge more confidence on the sector, the government passed the Corporations Amendment (Digital Assets Framework) Bill 2025 soon after, requiring digital asset platforms and tokenised custody platforms to acquire Australian financial services licence (AFSL) and comply with consumer protection obligations.

The move was welcomed by the industry.

However, according to Swyftx, Australians remain reluctant to invest in digital assets with their super, noting that only a quarter (25%) want their fund to invest in crypto, compared to over half (56%) that do not.