ECB Launches Pontes to Replace Stablecoins in Tokenized Finance
The European Central Bank (ECB) has launched Pontes, a system for settling tokenized assets without relying on stablecoins. This move is part of the Eurosystem's strategy for tokenized finance.
Pontes allows financial institutions to settle wholesale tokenized asset transactions in central bank money, providing an alternative to private settlement assets like stablecoins.
The ECB announced Pontes' launch as a core set of services, with full implementation expected by 2028. Tokenization represents assets as digital tokens on distributed ledger technology (DLT) networks.
Pontes combines issuance, trading, settlement, custody, and servicing on a single platform while enabling automation through smart contracts. ECB Executive Board member Piero Cipollone said Pontes 'brings the stability and trust of central bank money to the European tokenised finance ecosystem.'