The European Central Bank and euro-area national central banks have launched Pontes, a distributed-ledger settlement service that connects tokenized markets with the Eurosystem’s existing payment infrastructure. The goal is to let wholesale transactions in tokenized assets settle in central bank money rather than relying solely on commercial-bank deposits or private settlement tokens.
How Pontes connects the systems
Pontes links external distributed-ledger platforms to TARGET Services. Participants can use cash tokens on the Eurosystem DLT platform or settle through T2, the real-time gross settlement system. Finality is reached when the cash side completes in T2.
A Hash-Link protocol coordinates delivery-versus-payment and other all-or-none transactions. In a securities trade, that structure is intended to prevent the asset from changing hands unless payment also completes. The ECB’s launch announcement says the design grew out of 2024 exploratory work involving more than 50 trials and 64 public- and private-sector participants.
Who is connected at launch
The initial group includes 13 market participants, among them Deutsche Bank, Santander, the European Investment Bank and KfW. DLT operators Axiology, Cashlink, Clearstream and SWIAT were also named, alongside the Deutsche Bundesbank.
That roster does not mean every tokenized security in Europe can use Pontes immediately. Each issuance and platform still has its own legal, technical and operational requirements. Pontes supplies a settlement bridge and central-bank-money leg for eligible wholesale activity.
The ECB plans to participate
The ECB also started preparatory work to place a small share of its own funds into tokenized securities settled through Pontes. The initial scope covers euro-denominated securities from euro-area governments, regional authorities, agencies and European supranational institutions. Operational details and timing remained to be set by the Executive Board.
Using its own portfolio would give the ECB direct experience with trade execution, settlement and asset management on tokenized rails. It is an operational experiment, not a broad change to monetary policy or a plan to move all central-bank assets on-chain.
What comes next
The Eurosystem expects to add features and longer operating hours in stages. Full implementation is planned by 2028, while a separate initiative called Appia is developing a broader blueprint for tokenized finance in Europe. Adoption will depend on issuers, market operators and banks deciding that faster or more programmable settlement offsets integration and compliance costs.
Pontes is wholesale infrastructure
The service is aimed at banks, market operators and institutional securities transactions. It is not a retail digital-euro wallet and does not move ordinary consumer payments onto a public blockchain. The distinction matters because central-bank-money settlement describes the cash asset used between eligible financial participants. Access, legal status and transaction rules remain governed by the Eurosystem and the connected market infrastructures rather than by open participation.
Sources & further reading
- Adapted from BlockchainReporter: ECB Launches Pontes to Settle Tokenised Assets in Central Bank Money
- Primary announcement: European Central Bank