The European Central Bank has formally launched Pontes, a new settlement link connecting distributed ledger technology platforms used by financial market participants with the Eurosystem’s TARGET Services. The service allows transactions involving tokenized assets to settle in central bank euros, giving participating institutions access to central bank money for the cash side of blockchain-based transactions rather than relying on privately issued stablecoins or commercial bank money.
At launch, Deutsche Bank, Santander and securities clearing group Clearstream are among the first institutions onboarded. Pontes will initially operate between 8:00 a.m. and 4:00 p.m. CET on business days. The ECB plans to extend operating hours to 22.5 hours per business day and eventually around the clock, with later versions expected to bring settlement finality onto a Eurosystem-operated DLT platform and introduce smart contract functionality.
The launch follows the Eurosystem’s 2024 exploratory work involving 64 participants, more than 200 transactions and €1.59 billion in settled value. It is separate from the retail digital euro project and is not a new euro stablecoin, but wholesale settlement infrastructure for tokenized securities. From March 30, marketable securities issued through DLT-based services at central securities depositories became eligible as collateral for Eurosystem credit operations when they meet existing requirements.
The ECB is also preparing to invest a small portion of its €23 billion own-funds portfolio in highly rated, euro-denominated digital securities issued by public-sector institutions. Longer term, the Appia programme is examining a more integrated tokenized financial ecosystem, with a comprehensive blueprint expected in 2028. Executive Board member Isabel Schnabel has called for central banks to ‘go on-chain’, and the Pontes launch marks one of the most concrete steps yet by a major central bank toward tokenized capital markets.
