ECB to invest reserve funds in tokenized securities via new Pontes platform
Summary
The ECB plans to invest a small portion of its reserves in tokenized securities, initially focusing on euro-denominated bonds issued by euro-area governments, regional authorities, agencies and supranational institutions. Transactions would settle through Pontes, a Eurosystem platform linking blockchain-based markets with settlement in central bank money. The ECB will test the process, including investment, settlement and portfolio management. Its executive board will set the investment size and timing after preparatory work, taking market development into account. Pontes is the first stage of the Eurosystem’s tokenized-finance strategy, with broader services planned and full implementation expected by 2028.
