The Eurosystem launches Pontes, a solution that allows for the settlement of wholesale transactions with tokenised assets in central bank money. Full deployment is expected by 2028.
The Eurosystem has launched Pontes, a solution that enables the settlement of wholesale transactions with tokenised assets in central bank money, according to ecb.europa.eu. This initiative is the first step in the Eurosystem's strategic programme to adapt central bank money to a tokenised environment and support the development of this financial ecosystem.
Tokenisation involves issuing or representing assets in the form of digital "tokens", typically recorded on distributed ledger technology (DLT) networks. In wholesale financial markets, this technology can streamline transactions by consolidating various phases of an asset's lifecycle, from issuance and trading to settlement, custody, and management, while enabling automation through smart contracts.
"The Eurosystem is working to achieve a more integrated, innovative, and resilient European financial market in the digital age," stated Christine Lagarde, President of the ECB. "We will continue to progress in close collaboration with the market."
Pontes is based on the results of DLT settlement tests in central bank money conducted by the Eurosystem in 2024, where public and private participants indicated that access to a risk-free settlement asset was crucial for adopting this technology. The platform will initially offer a basic set of services that will expand as market needs and technology evolve. Enhanced features and a broader operating schedule will be gradually introduced, with full implementation expected by 2028.
"Pontes brings the stability and trust of central bank money to the European tokenised finance ecosystem," noted Piero Cipollone, a member of the ECB Executive Board. "It will provide a significant advantage for scaling."
A first group of market participants and DLT operators has completed their onboarding and is ready to use Pontes immediately. Other participants have committed to connect in the coming months.
The development of an integrated ecosystem for DLT-based financial services continues with Appia, a project involving experimentation and analysis by the Eurosystem, the central bank of Denmark (Danmarks Nationalbank), and public and private stakeholders, aiming to deliver a detailed plan by 2028.
Interested entities can find more information about Pontes and the Eurosystem's tokenised finance initiatives on the ECB's website.
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