ECB's Pontes Platform Connects Blockchain Networks with Central Bank Money

The European Central Bank (ECB) has launched its Pontes settlement platform on September 21, 2026. This platform allows banks and securities depositories to settle trades in tokenized securities using central bank money.

Pontes is a wholesale platform that connects private blockchain networks with the central bank's existing payment systems. It uses a mechanism called a hash link to tie the securities leg on one platform to the cash leg on another, implementing delivery versus payment for tokenized paper.

The launch of Pontes marks an important distinction between tokenized securities and crypto-assets. Under German law, these are two different things with distinct tax implications. A crypto-security is a security that is entered in a crypto-securities register, subject to rules for investment income under section 20 of the Income Tax Act.

The ECB has announced that it will invest a small part of its own portfolio in tokenized securities and settle those purchases in central bank money via Pontes. The platform currently offers two routes for settlement: cash tokens on the DLT platform or booking in T2, with full implementation expected by 2028.

The launch of Pontes is significant because it brings the stability and trust of central bank money to Europe's ecosystem for tokenized financial transactions. It also sets a benchmark for the industry, with providers now needing to disclose what the cash leg of a transaction is settled in. This distinction matters for investors who want to know whether they are holding a security or a crypto-asset.