ECB launches Pontes to settle tokenized assets without stablecoins
The ECB launched Pontes, a system that lets financial institutions settle wholesale tokenized asset transactions in central bank money instead of private settlement assets like stablecoins. Pontes is part of the Eurosystem’s tokenized finance strategy and starts with core services, with full implementation expected by 2028. Tokenization puts assets into digital tokens on distributed ledger technology, which can speed up wholesale markets by combining issuance, trading, settlement, custody, and servicing on one platform and enabling smart-contract automation. The ECB said Pontes adds the stability and trust of central bank money to Europe’s tokenized finance ecosystem. It builds on 2024 tests of DLT-based settlement in central bank money, which showed that access to a risk-free settlement asset is important for broader adoption. The Eurosystem is also working on Appia, a related initiative for a wider DLT-based financial ecosystem.
