ECB Aims to Build Integrated European Ecosystem for Digital Assets
The European Central Bank (ECB) is working to build an integrated and dynamic European ecosystem for digital assets, with central bank money at its core. According to Piero Cipollone, a member of the ECB's Executive Board, tokenisation has the potential to reorganise the entire financial value chain.
Cipollone pointed out that Europe's capital markets are deeply fragmented, with 31 central securities depositories (CSDs), 14 central counterparties (CCPs) and 323 trading venues. However, he believes that tokenisation could simplify the architecture of finance itself, making it more efficient.
The ECB has made progress in this area, with its Pontes and Appia projects. The Eurosystem is also working to offer settlement of DLT transactions in central bank money, providing a safe asset and a monetary anchor for tokenised finance to grow.