ECB Launches Pontes System, Enabling Tokenized Asset Settlement in Central Bank Money
Summary
- The European Central Bank said it has launched Pontes, allowing financial institutions to settle tokenized-asset transactions in central bank money.
- The ECB said it introduced Pontes as part of the Eurosystem’s tokenized finance strategy and plans to gradually expand services and participating institutions through 2028.
- The ECB also said it is separately advancing the Appia project to connect DLT-based financial services, with a related blueprint due by 2028.
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The European Central Bank has launched Pontes, a system that allows financial institutions to settle tokenized-asset transactions in central bank money without relying on private payment assets such as stablecoins.
Cointelegraph reported on September 21 that the ECB introduced Pontes as part of the Eurosystem’s tokenized finance strategy. The system will initially offer a limited set of core functions, with services, operating hours and participating institutions to be expanded in phases through 2028.
Pontes is designed to use central bank money for the settlement and clearing of tokenized-asset transactions between financial institutions. The ECB said that would allow blockchain-based financial transactions to be processed without depending on privately issued assets such as stablecoins.
The system was built on the Eurosystem’s 2024 experiment on settling distributed ledger technology, or DLT, transactions in central bank money. Institutions that took part in the test said access to low-risk settlement assets was important for the broader adoption of tokenized finance.
Separately, the ECB is pursuing the Appia project, which is designed to connect DLT-based financial services within a single environment. It plans to draw up the related blueprint by 2028.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.