#Eurosystem

ECB targets 21 September go live for Project Pontes. A primer on tokenized central bank money

The European Central Bank (ECB) has scheduled the production launch of Project Pontes for September 21, marking a significant step in integrating tokenized central bank money into financial markets. This initiative provides financial institutions with a secure mechanism to settle distributed ledger technology (DLT) transactions using the safest form of money available. Pontes introduces two distinct settlement models: the use of cash tokens residing on the Eurosystem’s DLT or a trigger model that initiates conventional payments via the T2 real-time gross settlement system. By prioritizing central bank money over commercial bank alternatives or stablecoins, the ECB aims to reduce counterparty risk in digital asset transactions. Institutions intending to participate in the initial launch must complete mandatory testing and register with their respective national central banks by August 7. This development is critical for the RWA market as it establishes a standardized, risk-free settlement layer for tokenized assets within the Eurozone. The project underscores the ECB's commitment to modernizing financial infrastructure while maintaining the integrity of sovereign currency in a blockchain-enabled ecosystem.

ledgerinsights.com·2h ago