ECB launches ‘digital euro for banks’ and prepares to buy tokenized bonds
The Eurosystem launched Pontes, a live settlement link between distributed-ledger platforms and TARGET that lets banks settle tokenized securities in central-bank money. Major banks, the European Investment Bank and several DLT operators have onboarded; more are expected. Pontes begins with limited services, with expanded functionality and full implementation targeted for 2028. The ECB is also preparing to invest a small, undisclosed share of its own funds in euro-denominated tokenized public-sector securities, settling purchases through Pontes. The investment is intended to build operational experience, not serve as monetary policy. No live settlement had been reported at launch, so transaction activity and the scale and timing of the ECB’s purchases will indicate whether the system gains traction.
