ECB maps out two-track plan for digital euro and tokenised finance

The European Central Bank wants euros on the blockchain. It is taking two separate routes to get them there.

The ECB plans to introduce a digital euro to support secure, efficient and integrated digital payments and tokenised finance across Europe. The strategy splits into a retail digital euro for everyday users and a wholesale tokenised finance track for banks and market infrastructure.

Pontes: the wholesale track arrives first

The centrepiece of the near-term plan is Pontes, a platform set to launch on September 21, 2026. Its job is to settle tokenised asset transactions in central bank money.

Pontes links the ECB’s existing TARGET Services to various distributed ledger technology (DLT) platforms, the shared databases that underpin blockchain-based assets. A bank trading a tokenised bond on a blockchain could settle the cash leg in actual central bank money, without relying on a private stand-in for the euro.

ECB President Christine Lagarde framed the platform in notably direct terms.

“Digital euro made available for banks.”

Initial onboarding of 13 market participants, including Deutsche Bank and Santander, is completed by the launch date.

The ECB is also putting its own balance sheet to work. Its investment in tokenised euro-area public-sector securities is underway, with settlement running through Pontes.

Appia and the three models for on-chain central bank money

The Appia initiative aims to establish an integrated European tokenised finance ecosystem by 2028. Its focus covers standards, interoperability, governance and collaboration among market participants.

In early October 2026, ECB Executive Board member Isabel Schnabel outlined three technical models for moving central bank money onto blockchain platforms. Her presentation emphasized scalability and stability.

The three options are:

Direct issuance of tokenised reserves. The central bank puts its own money natively on-chain.

Interoperability with existing settlement systems. Blockchains connect to the current infrastructure rather than replacing it, which is roughly the Pontes approach.

Backed settlement tokens issued by private intermediaries. Private firms issue tokens backed by central bank money, with the central bank one step removed.

Across all three, the stated constraint is the same: preserve the stability of the monetary system.

The retail digital euro takes the scenic route

Trialogue negotiations on the digital euro’s legislative framework began in July 2026. The target is completion by the end of 2026.

Calls for participation closed on October 27, 2026 for merchants and on November 9, 2026 for private organizations.

Merchant pilot programs are set to commence in mid-2027. A potential first issuance of the digital euro is anticipated in 2029.

What this means

For banks, Pontes offers a way to experiment with tokenised assets while settling in central bank money. With 13 participants onboarded at launch, including Deutsche Bank and Santander, the platform starts with real institutional weight.

Schnabel’s third model deserves particular attention: backed settlement tokens issued by private intermediaries would leave room for private firms to operate on-chain euro instruments under a central bank framework.

On the retail side, the legislative timeline depends on trialogue talks wrapping up by the end of 2026. Any delay there would ripple into the mid-2027 merchant pilots and the potential 2029 issuance.

The concrete developments to watch are: transaction activity and new participant onboarding on Pontes after its September 21, 2026 launch; whether trialogues conclude on schedule; and turnout and engagement in the merchant pilots, which the research identifies as a bellwether for wider adoption of digital currencies in mainstream finance.