ECB Launches Blockchain Bridge for Tokenized Trades

The European Central Bank (ECB) has launched Pontes, a blockchain bridge that enables regulated financial platforms to settle tokenized trades in central bank money without moving assets onto an ECB blockchain.

Pontes connects market-operated distributed ledger technology platforms with TARGET Services, the infrastructure used by the Eurosystem for large-value payments and securities settlement. This connection allows participating institutions to settle cash legs in central bank money using either cash tokens on a Eurosystem DLT platform or T2, the ECB's real-time gross settlement system.

The launch of Pontes follows a €1.6 billion test program that ran from May to November 2024 and involved 64 market participants across nine jurisdictions, testing 58 use cases for digital bonds, automated wholesale payments, and cross-border transactions.