Eurosystem Launches Pontes for Tokenized Asset Settlement
The Eurosystem has launched Pontes, a new settlement service that enables wholesale transactions in tokenized assets to settle in central bank money. This connection of blockchain-based financial markets with the euro area's existing payment infrastructure marks an important step towards a more integrated and innovative European financial market.
ECB President Christine Lagarde highlighted the significance of this launch, stating 'Today marks an important step for European finance. With the launch of Pontes, we are providing the infrastructure for settling tokenised asset transactions in central bank money, supporting innovation and integration across Europe.'
Pontes is the first initiative under the Eurosystem's strategy to make central bank money available for tokenized financial markets. The service provides the cash leg of wholesale DLT-based transactions in central bank money, connecting market DLT platforms with TARGET Services.