ECB Brings Central-Bank Money onto Blockchain with Pontes System
The European Central Bank (ECB) has launched a new blockchain settlement system called Pontes. This system connects distributed-ledger technology platforms used by financial-market participants with the Eurosystem's existing TARGET Services.
Pontes allows banks and other eligible financial institutions to settle transactions involving tokenized assets directly in central-bank money, marking a major step in Europe’s effort to integrate blockchain with traditional financial infrastructure. The system will initially provide a core set of services before expanding its functionality and operating hours.
The ECB launched the service on Sept. 21 and said it represents the first operational step in its strategy for making central-bank money fit for a tokenized financial system. Deutsche Bank, Santander, Société Générale, the European Investment Bank and other major financial institutions are among the initial participants.