ECB's Pontes System Goes Live with XRP Ledger-Based Axiology Infrastructure

The European Central Bank (ECB) has launched its Pontes system, which allows tokenized securities to settle in central bank money through the Eurosystem. The Pontes system is based on a private, permissioned infrastructure built using the open-source code of the XRP Ledger.

Axiology, a Lithuanian financial market infrastructure company, is one of four DLT operators connected to the ECB's new settlement system. Axiology uses XRPL technology as its foundation but operates independently with permissioned participants such as regulated banks and brokers.

The Pontes system tackles a problem facing Europe's growing tokenized asset market by providing a trusted way for institutions to settle the cash side of transactions using central bank money. The ECB wants this settlement anchor to remain central bank money rather than forcing institutions to depend on stablecoins or other private money.