ECB Invests in Tokenised Securities to Boost Central Bank Money

The European Central Bank (ECB) has launched preparatory work to invest in tokenised securities, gaining practical experience as an investor and building expertise in distributed ledger technology (DLT). This step supports the Eurosystem's strategy to make central bank money 'fit for the digital age'.

Initial investments will focus on euro-denominated securities issued by euro area central governments, regional governments, agencies, and European supranational institutions. The purchases will be settled in central bank money via Pontes.

The ECB's Executive Board will determine the operational details and timing of the investments after completing preparatory work.