ECB Launches Pontes to Bring Central Bank Money to Tokenized Finance

ECB launches Pontes for wholesale tokenized asset settlements using central bank money, supporting Europe’s growing digital financial infrastructure through 2028.

The ECB launched Pontes on September 21, 2026, enabling wholesale tokenized asset transactions using central bank money. The new system connects tokenized finance with established Eurosystem settlement infrastructure. As a result, banks are able to utilize central bank money in eligible tokenized transactions.

Pontes is the Eurosystem’s first effort in tokenized finance. The project adapts central bank money for increasingly digital financial markets.

How ECB’s Pontes Will Support Tokenized Asset Settlements

Tokenization is the process of turning assets into digital tokens, typically through the use of distributed ledger technology. These networks can facilitate quicker trading, settlement, custody, and other financial processes.

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Furthermore, smart contracts can streamline some of these processes. This may enable financial institutions to integrate multiple phases of an asset’s life cycle more effectively.

Pontes expands on the Eurosystem 2024 tests. Those tests looked at the potential of using distributed ledger technology to facilitate settlement with central bank money.

The ECB stated that the participants believed access to a settlement asset without risk to be important. For this reason, Pontes is looking to offer central bank money for wholesale tokenized transactions.

ECB president Christine Lagarde said the Eurosystem is seeking a more integrated financial market. She also drew attention to the innovative and resilient nature of Europe’s digital financial system.

Pontes will offer a basic package of services to participating institutions initially. However, the Eurosystem plans to expand those services according to market needs.

Enhanced features and longer operating hours will arrive gradually. The ECB aims to achieve full implementation by 2028.

The ECB has also confirmed initial participation from banks and distributed ledger operators. More will be added in the next few months.

Pontes Separates Tokenized Settlement From Private Stablecoins

At the core of Europe’s tokenised financial infrastructure is the money of the central bank, says Pontes. Central bank money is not issued by private settlement units but it is a creation of the central banking system.

The ECB hasn’t characterized Pontes as an alternative to stablecoins. But the system offers another path to settlement for institutions that are involved in tokenized assets.

Executive Board member of the ECB Piero Cipollone stated that Pontes is bringing central bank money to tokenized finance. He added that this could support the ecosystem’s expansion.

The Eurosystem is also working on a separate project called Appia, which is aimed at financial services using DLT. Appia includes both public and private stakeholders, including the Eurosystem and Danmarks Nationalbank.

The ECB hopes to have a more comprehensive blueprint from Appia by 2028. Pontes is thus part of the broader European strategy towards tokenized financial infrastructure.

Importantly, Pontes is interested in wholesale financial transactions. However, it should not be mistaken for the retail digital euro project of Europe.

The ECB said Pontes will evolve as technology and market requirements develop. As a result, over time, participating institutions will have access to increased services.

The first set of participants comprises a number of European banks and financial institutions. It also features DLT operators like Axiology, Cashlink, Clearstream, and SWIAT.

Overall, Pontes provides European financial institutions with a new structure for the settlement of tokenized assets. It will gradually influence the role that central bank money plays in supporting tokenized markets until 2028.