ECB Launches Pontes, Enabling Wholesale Transactions in Tokenised Assets

The European Central Bank (ECB) has launched Pontes, a solution that enables wholesale transactions in tokenised assets to be settled in central bank money. This is a major development for the financial industry, as it allows for greater efficiency and security in cross-border payments.

Pontes builds on the outcome of the Eurosystem's 2024 tests using DLT (Distributed Ledger Technology) for central bank money settlement. It operates as a bridge between distributed ledgers and the Target settlement service, which will initially offer a core set of services to be expanded over time in line with market needs and technological developments.

The ECB has also announced that it will continue to invest in tokenised securities, with initial investments to entail euro-denominated euro area public sector and European supranational securities. This is part of the ECB's effort to gain first-hand experience of the use of blockchain technology in financial markets.