ECB Launches Pontes for Tokenized Asset Settlement
The European Central Bank (ECB) has launched Pontes, a new system that enables tokenized asset settlement in central bank money for euro-area financial institutions. Pontes is designed to link distributed ledger platforms with TARGET Services, the Eurosystem's existing high-value payment system.
Pontes will initially be available to credit institutions and targets wholesale financial markets rather than consumer payments. The service was tested from May to November 2024 with 64 market participants, processing over EUR 1.5 billion in transactions.
The ECB has paired Pontes with another initiative called Appia, which explores the long-term potential of a tokenized European financial ecosystem based on distributed ledger technology. While Pontes addresses immediate demand for interoperability between DLT platforms and central bank settlement infrastructure, Appia examines whether Europe needs an integrated tokenized financial infrastructure in the future.