ECB Connects Blockchain Markets to Central-Bank Settlement Infrastructure
The European Central Bank (ECB) has launched Pontes, a platform that connects blockchain-based financial markets with central-bank settlement infrastructure. This move marks a significant shift in the way banks settle tokenized securities using central-bank money.
Pontes allows institutions to access central-bank settlement while keeping the underlying assets tokenized on distributed-ledger platforms. The initial group of 13 market participants includes major European banks and several DLT operators, with plans for additional participants in the coming months.
The ECB is investing its own funds in tokenized securities through Pontes, with a focus on euro-denominated securities issued by euro-area governments and regional authorities. This move aims to provide real financial activity involving the institution's own portfolio and experience the complete tokenized-asset lifecycle.