ECB Commits Central Bank Money to Tokenised Settlement With Pontes Launch
The European Central Bank (ECB) is launching its Pontes settlement system in 2026, marking the first time central bank money will be used for settlement on distributed-ledger technology (DLT) platforms as an operational service. By connecting market DLT platforms to the Eurosystem’s TARGET Services, Pontes enables delivery-versus-payment finality, eliminating the credit and liquidity risks associated with private settlement assets like stablecoins or commercial bank money. To drive rapid adoption, the ECB has implemented an aggressive pricing strategy, charging only a one-off onboarding fee with no recurring transaction costs at launch. The system will initially operate 22.5 hours per business day, with plans to transition to a 24/7, multi-currency service by mid-2028. This initiative follows the Eurosystem’s 2024 exploratory phase, which involved over 50 trials and 64 market participants to prove the technical viability of DLT-based central bank money settlement. Alongside Pontes, the ECB is developing the Appia project to provide a blueprint for an integrated European tokenized financial ecosystem by 2028. These developments are critical for the RWA market, as they address the fragmentation of the European financial system and provide the necessary infrastructure for tokenized assets to function within the broader funding system.
- ▸Pontes launches in 2026, enabling central bank money settlement for tokenized assets on DLT.
- ▸The ECB will waive recurring transaction fees at launch to incentivize market adoption.
- ▸Eurosystem plans to scale Pontes to 24/7, multi-currency operations by mid-2028.
- ▸Tokenized assets are now eligible as collateral within the Eurosystem’s funding framework.
The Eurosystem is the monetary authority of the Eurozone, comprising the European Central Bank and the national central banks of EU member states. TARGET Services represent the existing infrastructure used by the Eurosystem to process large-value payments and settle securities transactions across Europe. By integrating these services with DLT, the ECB aims to modernize financial market infrastructure while maintaining the safety and finality of central bank money.