ECB Launches Pontes for Tokenized Bank Settlement in Europe
The European Central Bank (ECB) is set to launch Pontes on September 21 in Frankfurt, marking an extension of central bank settlement into tokenized finance. The project connects private distributed ledger platforms with the Eurosystem's TARGET Services.
Pontes allows eligible market participants to access central bank money while retaining links with existing payment infrastructure. This separation from the consumer-focused digital euro project also gives institutions access to reliable cash settlement for tokenized securities.
ECB Executive Board member Piero Cipollone explained that Pontes will initially use central bank money for final cash-leg settlement, supporting delivery-versus-payment transactions where both transaction legs settle together. This structure reduces principal risk when cash and tokenized assets move across separate systems.