The European Central Bank has officially launched Pontes, a new service designed to settle blockchain-based wholesale transactions using central bank money. According to ECB reports, the platform connects distributed ledger technology platforms used by financial market participants with the Eurosystem's TARGET Services, allowing transactions involving tokenized assets to settle in central bank euros. Deutsche Bank, Santander and securities clearing group Clearstream are among the first institutions to complete onboarding and gain access to the platform. ECB President Christine Lagarde announced the go-live at a Eurogroup meeting on Friday, stating that "Pontes is a digital euro made available for banks so that they can transact amongst themselves using tokenized assets and distributed ledger technology." As reported by Reuters, the ECB launched the service on Monday, September 21, 2026, marking a significant milestone in central bank digital innovation. The launch was marked by a roundtable in Frankfurt, Germany, where ECB officials presented the new infrastructure to market participants. Only credit institutions will be able to access and use the infrastructure initially, with the platform initially operating during normal European business hours before expanding to round-the-clock settlement in later stages.
The ECB is preparing to invest a small portion of its €23 billion own funds portfolio in highly rated blockchain-based debt securities. According to ECB reports, initial investments will focus on euro-denominated securities issued by euro-area governments, regional authorities, agencies and European supranational institutions. The central bank's executive board will determine the size, timing and operational details of the investments once preparatory work is complete, with the decision depending partly on the development of tokenized securities issuance and Europe's wider tokenized finance market. As reported by Reuters, ECB board member Isabel Schnabel said central banks should "go on-chain," arguing this would reduce reliance on private alternatives and enable faster, more efficient transactions. The ECB has also selected 36 banks, fintechs, and payment companies for a 12-month pilot expected to begin in the second half of 2027, with potential issuance from 2029. Pontes will allow the ECB to test the technology as an investor, from buying tokenized bonds to settlement and portfolio management, giving the central bank direct exposure to blockchain-based financial markets. The investments are intended to provide the central bank with direct exposure to tokenized financial assets while allowing practical experience with blockchain-based markets.
Pontes will initially operate between 8 a.m. to 4 p.m. CET on business days, with the ECB planning to expand the service and its operating capabilities over time as adoption develops. The system went live on September 21, 2026, following an extensive testing programme between May and November 2024. According to the ECB, the Eurosystem worked with 64 market participants on more than 50 trials and experiments, covering different models for connecting distributed ledgers to central-bank settlement infrastructure. More than €1.5 billion in transactions were processed during the testing phase, generating technical, operational and legal input that informed the design of Pontes. The platform is designed to link market distributed ledger technology platforms with the Eurosystem's existing TARGET infrastructure instead of requiring securities transactions to move entirely onto a single blockchain network. Legal settlement finality for the cash side remains anchored in the Eurosystem's TARGET2 system, with later versions expected to bring settlement finality onto a Eurosystem operated DLT platform.
The ECB has outlined ambitious expansion plans for Pontes beyond its initial rollout. ECB plans published before launch called for operating hours to eventually reach 22.5 hours per business day, followed by round the clock availability and expanded programmability from mid 2028. The service builds on earlier Eurosystem experiments with wholesale central bank money settlement and runs alongside Appia, the ECB's longer term program for developing an integrated European tokenized financial system. According to the ECB, Pontes represents the near-term operational component, giving market participants access to central-bank money while a longer-term architecture is still under development. The second initiative, Appia, is intended to examine how an integrated European financial ecosystem based on tokenisation and DLT could eventually be structured, with a blueprint for the future ecosystem expected in 2028. Pontes is the first part of the Eurosystem's strategy to bring central bank money into tokenized finance, with the ECB planning to add services and longer operating hours over time.
Commenting on the announcement, Marius Jurgilas, CEO at Axiology, said: "Pontes is a major step towards bringing tokenised securities into mainstream capital markets. Giving institutions a way to settle tokenised securities in central bank money removes one of the biggest practical barriers to broader adoption. Institutions no longer have to choose between using new DLT infrastructure and settling in central bank money. Connecting the two gives tokenised securities the trusted cash leg they need to scale." Piero Cipollone, member of the ECB's executive board, emphasized the platform's strategic importance, stating: "Pontes brings the stability and trust of central bank money to the European tokenized finance ecosystem. It will give an important advantage to help it scale." The launch reflects a broader global trend among central banks adapting to blockchain technology in finance. According to Reuters, other central banks are pursuing similar initiatives, with the Bank of England testing blockchain use through its Digital Securities Sandbox, which allows market participants and regulators to examine how digital technologies can be used in securities markets. The ECB is also developing a digital euro for consumers, partly to wean the bloc off US credit cards, and aims to launch it in 2029.
