ECB unveils Pontes for tokenized asset settlement
6.8 Banking The ECB launched Pontes, a platform for settling tokenized asset transactions in central bank money, aiming to boost efficiency, transparency, and trust in European wholesale markets.
The European Central Bank (ECB) has introduced Pontes, a platform enabling eligible financial institutions to settle wholesale transactions of tokenized assets using central bank money. Pontes bridges distributed ledger technology (DLT) platforms with the Eurosystem’s TARGET Services, creating an official settlement infrastructure for real-world asset tokenization. This offers a regulated alternative to stablecoins and commercial-bank deposits. Currently, only credit institutions can access Pontes, but the ECB plans to expand operating hours and participant eligibility by 2028. Additionally, the ECB will begin preparatory work to invest a portion of its own funds in tokenized securities, focusing on euro-denominated bonds issued by European public entities. Pontes aims to enhance market transparency, reduce transaction costs, and foster public trust, while allowing each market to retain control over its asset infrastructure. This initiative highlights the EU’s commitment to market safety and integration, contrasting with the US’s private sector-driven approach.
