ECB Unveils Pontes to Connect Tokenized Markets to Central Bank Money

The European Central Bank has launched a new tool called Pontes to facilitate wholesale transactions of tokens using central bank money. The system underwent testing with approximately €1.6 billion in 50 trials in 2024 and is expected to be fully implemented by 2028.

Pontes will allow banks and market infrastructures to settle blockchain-based wholesale transactions using a central-bank settlement asset, connecting tokenized markets to central bank money. An initial cohort of financial firms and DLT operators has already been onboarded, including Deutsche Bank, Santander, Société Générale, Clearstream, and SWIAT.

The ECB aims to have the system in full use by 2028 and is planning to complete purchases of euro-denominated bonds using Pontes. The launch establishes the central bank's settlement infrastructure at the heart of crypto and tokenized-asset markets, providing institutional participants with another infrastructure on which to rely for digital asset transactions in Europe.