ECB deploys Pontes platform to settle wholesale tokenized assets in central-bank money
- The European Central Bank launched Pontes, a platform that lets eligible financial institutions settle tokenized-asset transactions in central-bank money.
- Pontes connects distributed-ledger platforms to the Eurosystem’s TARGET Services, offering an alternative to stablecoins and tokenized commercial-bank deposits for wholesale transactions.
- The wholesale platform is separate from the retail digital euro, which is scheduled for a one-year pilot beginning in the second half of 2027 ahead of possible issuance in 2029.
The European Central Bank (ECB) launched Pontes on Monday, a platform that enables banks and other eligible financial institutions to settle tokenized-asset transactions in central-bank money.
ECB President Christine Lagarde announced the go-live at a Eurogroup meeting on Friday.
“Now, Pontes is, to summarize it quickly for you, it’s a digital euro made available for banks so that they can transact amongst themselves using tokenized assets and distributed ledger technology,” said Lagarde during a Eurogroup summit on Friday.
Pontes links market distributed-ledger technology platforms to the Eurosystem’s TARGET Services, enabling participating banks to settle tokenized wholesale transactions in central-bank money. It will only be available to eligible financial institutions and market infrastructure providers.
Tokenized bonds, funds and other financial assets need a reliable way to settle the cash side of a trade. Pontes gives European institutions a central-bank-money option, rather than requiring them to rely solely on stablecoins or tokenized commercial-bank deposits.
The platform is part of the ECB’s broader effort to keep central-bank money at the core of Europe’s increasingly tokenized financial markets. The ECB has said Pontes will be developed in stages, alongside its longer-term Appia initiative for wholesale tokenization.