ECB Launches Pontes for Tokenized-Asset Settlement in Central Bank Money

The Eurosystem launched Pontes on September 21, enabling wholesale tokenized-asset transactions to settle in central bank money, the European Central Bank said. Pontes provides an operational route for transactions involving tokenized wholesale assets to use a central-bank settlement asset instead of settling solely within private platforms.

The ECB also said it has begun preparatory work to invest a small portion of its own funds in tokenized securities. Those purchases are intended to settle through Pontes, making the central bank an early planned user of the new arrangement.

Pontes links platforms to TARGET Services

According to Euronews, Pontes connects tokenized-finance platforms built with distributed-ledger technology to the Eurosystem's TARGET Services, providing central bank money as the settlement asset for wholesale transactions.

ECB plans tokenized-securities purchases

In a separate announcement, the ECB said its preparatory work covers investment of a small share of its own funds in tokenized securities, with settlement planned through Pontes. The initial targets include euro-denominated public-sector and supranational securities, according to the ECB.

The central bank did not specify the size of the planned allocation or announce a timetable for purchases. Its stated plan nevertheless ties prospective securities activity directly to the settlement infrastructure introduced on the same day.

Full implementation expected by 2028

The Eurosystem expects full implementation of Pontes by 2028.

Pontes is not yet a fully built-out market infrastructure: it starts with a core set of functions, with enhanced features and longer operating hours to be introduced progressively.

The September launch therefore begins the phased availability of central-bank-money settlement for wholesale tokenized assets rather than completing the rollout.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.