European Central Bank Connects Tokenized Assets to Central Bank Money
The European Central Bank (ECB) has launched Pontes, a wholesale settlement platform that connects tokenized assets to central bank money. This development could accelerate institutional blockchain adoption in Europe by bridging DLT markets with TARGET.
Pontes allows banks to settle through tokenized cash on the Eurosystem DLT platform or through T2, its real-time gross settlement system. Final settlement in central bank money provides the legal certainty required by institutional markets, according to ECB President Christine Lagarde.
The initial service remains limited, but the ECB plans progressively longer operating hours and other enhancements. Its Appia initiative will use those lessons as a blueprint for an integrated European tokenized financial system by 2028.