ECB Approves Pontes, Appia to Settle DLT in Central Bank Money
The European Central Bank (ECB) has approved a two-track plan for settling distributed ledger technology (DLT) transactions using central bank money. The first track, “Pontes,” aims for a short-term solution by linking blockchain-based DLT platforms with TARGET Services, facilitating payments and securities in the eurozone. A pilot for Pontes is expected by the end of Q3 2026, utilizing insights from 2024 DLT trials involving over 50 experiments and 64 participants. The second track, “Appia,” focuses on long-term development of an integrated ecosystem for safe and efficient global operations. The ECB will establish market contact groups for both tracks to engage with industry stakeholders. Recent DLT trials indicated strong demand for settling tokenized assets in central bank money, with €1.6 billion settled during trials. Findings suggest DLT could reduce fragmentation and inefficiencies in capital markets but highlight the need for standardization and interoperability with TARGET Services.
