The Albanese government's new crypto rules aren't even in effect yet, but the clarity they promise is already benefiting the industry.
Former NAB executive Kate Cooper, who now leads Australian operations for global crypto exchange OKX, says she's seen a lot more inbound conversations from the traditional financial institutions as a result of forthcoming regulations.
"We're at this pretty pivotal inflection point from an Australian point of view, where we've been calling and I've been heavily lobbying for fit-for-purpose legislation, and we're finally at the point where the government has come to the table," she told AAP.
The Albanese government has invited comment on two pieces of crypto regulations: one that would provide a framework over the custody of digital assets with a consultation period that closes on Friday, and another that regulates digital payments, for which consultation closes a few weeks later.
"But what's really interesting is the extent to which even the consultation undertaking for draft legislation has provided a real shot in the arm for the industry, especially institutional engagement," Ms Cooper said.
When she served as NAB's head of innovation and executive for digital assets from 2020 through January 2025, Ms Cooper said the fog around regulatory clarity served as an excuse some of her colleagues used to not engage with the sector.
"And I think that anything that provides that level of clarity means that conversations are picking up," she said.
"Doors are opening up at a large institution level that hadn't been open until now, and exploratory conversations are definitely picking up.
"I can't name anyone, obviously, but certainly at the large capital end of town."
The draft rules would require crypto exchanges to hold an Australian Financial Services Licence, the same licence that banks, brokers and insurers hold.
OKX already has received one in anticipation of the new rules, which Ms Cooper had been lobbying for.
She said OKX has about 160,000 Australian customers across the retail, wholesale and institutional segments.
Its biggest growth area in the past two to three months has been self-managed super fund trustees signing up to get exposure to crypto.
"We've seen a massive uptick," said Ms Cooper of the interest from SMSF trustees. "We're certainly into the thousands now."
OKX Australia on Wednesday launched a new product that Ms Cooper said should be of interest to SMSF trustees, a US dollar stablecoin that offers a 4.1 per cent yield.
The USDG stablecoin is issued by a fully regulated issuer, Paxos, and the yield is generated from interest on short-duration US Treasuries and reverse repurchase agreements, Ms Cooper said.
"In essence, that's the same underlying instruments that traditional money market funds rely on," she said.
There are other ways to access money market funds, but this provides an easy way for retail investors to do so, she said.
