Eurosystem Launches Blockchain Platform for Tokenized Asset Settlements
Eurosystem launched Pontes, a blockchain platform for settling wholesale transactions in tokenized assets using central bank money (CeBM). The European Central Bank (ECB) also began preparations to invest a portion of its own funds in tokenized securities through the new platform.
Eurosystem launched Pontes to settle wholesale transactions in tokenized assets directly in central bank money. The infrastructure enables the settlement of transactions involving assets issued or represented as digital tokens and recorded using distributed ledger technology (DLT).
Pontes became the first operational project under the Eurosystem’s strategy to adapt central bank money to the market for tokenized financial assets. Initially, the platform will provide a basic set of settlement services. The Eurosystem plans to gradually expand its functionality and extend its operating hours. Full implementation of the planned capabilities is expected by 2028.
An initial group of banks, financial institutions, and DLT infrastructure operators already joined Pontes ahead of its launch. The group includes:
- 14 market participants: ABANCA, BayernLB, Caisse des Dépôts et Consignations, Cecabank, Deutsche Bank, Deka Bank, DZ Bank, the European Investment Bank, KfW, Memo Bank, NRW.BANK, Santander, Société Générale, and Deutsche Bundesbank;
- 4 DLT infrastructure operators: Axiology, Cashlink, Clearstream, and SWIAT.
These organizations already completed the onboarding process and can use Pontes. The Eurosystem said additional participants plan to join the system in the coming months.
The European Stability Mechanism (ESM) supported the launch of Pontes. The organization said settlement in central bank money can connect new DLT platforms with the existing, reliable infrastructure of central banks and support the development of Europe’s tokenized finance market.
European Central Bank Plans to Buy Tokenized Securities
Alongside the launch of the new settlement infrastructure, the ECB announced preparations to invest a small portion of its own portfolio in tokenized securities. The initiative doesn’t involve monetary policy instruments. It concerns the ECB’s own investment portfolio, whose income is used to finance the central bank’s operating expenses.
Through the initiative, the ECB expects to gain practical experience with DLT across all stages of the investment process, from trade execution and settlement to IT systems and portfolio management. Purchases will be settled in central bank money through Pontes.
Initially, the ECB intends to focus on euro-denominated tokenized securities issued by:
- central governments of euro area countries;
- regional governments;
- public and other agencies;
- European supranational institutions.
Specific investment volumes, timing, and other operational parameters haven’t yet been determined. The ECB’s Executive Board will approve them after the preparatory work is completed, taking into account developments in Europe’s tokenized issuance market.
Eurosystem Builds Infrastructure for the Tokenized Financial Market
Pontes is part of the Eurosystem’s broader program and builds on the results of trials conducted from May through November 2024 to test the settlement of DLT transactions in central bank money. The trials involved 64 organizations from 9 jurisdictions, with real settlement volumes reaching nearly €1.6 billion. Following the program, market participants identified access to central bank money as one of the key requirements for scaling DLT infrastructure in Europe.
In 2026, the European Central Bank approved a 2-stage plan to integrate digital asset settlement through distributed ledgers. Under this program, Pontes represents the short-term stage. The long-term stage, Appia, focuses on developing a technology-neutral, scalable, and competitive infrastructure for secure and efficient CeBM settlement in DLT environments. The initiative’s overall goal is to prepare a blueprint for an integrated European DLT ecosystem for financial services by 2028.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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