The Eurosystem has launched Pontes, a solution enabling wholesale transactions in tokenised assets to be settled in central bank money, marking a key step in its strategy for tokenised finance.
The Eurosystem has introduced Pontes, a new solution that allows wholesale transactions in tokenised assets to be settled in central bank money. This initiative is the first under the Eurosystem’s strategic programme aimed at making central bank money suitable for a tokenised future and supporting the development of the digital financial ecosystem.
Christine Lagarde, President of the ECB, stated that “The Eurosystem is working to enable a more integrated, innovative and resilient European financial market in the digital age,” emphasizing ongoing progress in collaboration with market participants.
Tokenisation involves issuing or representing assets as digital tokens on distributed ledger technology (DLT) networks. It has the potential to make wholesale financial transactions faster and more efficient by streamlining processes from issuance to settlement, custody, and servicing, and by enabling automation through smart contracts.
Building on the Eurosystem’s 2024 DLT testing, Pontes will initially provide core services, with plans to expand features and operating hours gradually, aiming for full implementation by 2028. Piero Cipollone, ECB Executive Board member, highlighted that “Pontes brings the stability and trust of central bank money to the European tokenised finance ecosystem,” supporting its growth.
An initial group of market participants and DLT operators has completed onboarding and is ready to use Pontes immediately. Additional participants are expected to connect in the coming months, demonstrating confidence in this innovation’s potential to position Europe at the forefront of financial transformation.
The development of an integrated DLT-based financial services ecosystem continues under the Appia project, involving experimentation and analysis by the Eurosystem, Danmarks Nationalbank, and other stakeholders, with a blueprint expected by 2028.
For more information about Pontes and the Eurosystem’s tokenised finance initiatives, visit the ECB’s website.
