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ECB launches Pontes to support Europe’s tokenized financial markets
The ECB's new infrastructure connects distributed ledger platforms with central bank money, bringing 13 major banks into the tokenized finance fold from day one.
The Eurosystem, the euro area’s central banking system, has launched Pontes, a new settlement solution designed to allow wholesale tokenized assets to be settled using central bank money, the European Central Bank (ECB) said Monday.
The ECB formally introduced Project Pontes in 2024 after an exploratory phase that tested DLT-based settlement solutions. The initiative is part of the Eurosystem’s strategy to adapt its settlement infrastructure to tokenized financial markets and marks the first step to support Europe’s emerging digital finance ecosystem.
According to the ECB, Pontes will provide access to central bank money for transactions involving tokenized assets recorded on distributed ledger technology networks.
The Eurosystem said tokenization could streamline the wholesale financial markets by bringing multiple stages of the asset lifecycle together, from issuance and trading to settlement, custody and servicing. It could also support automated transactions and new financial applications through smart contracts.
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Pontes will initially offer a core set of services, with new features and longer operating hours introduced over time. Full implementation is expected by 2028.
The first group of market participants and DLT operators has already completed onboarding, while additional institutions have committed to connecting in the coming months.
The Eurosystem will continue developing the wider ecosystem through Appia, an initiative involving the Eurosystem, Danmarks Nationalbank and other stakeholders that aims to produce a blueprint for an integrated DLT-based financial ecosystem by 2028, the ECB stated.