ECB Launches Pontes Payment System for Blockchain Trades
The European Central Bank (ECB) has launched a new payment system called Pontes to settle blockchain trades in central-bank money. This bridge connects blockchain-based trading platforms to TARGET, the Eurosystem infrastructure used for settling payments between financial institutions.
Pontes allows institutions to complete trades in digital bonds and other tokenised assets using central-bank money instead of private stablecoins. Tokenisation enables bonds and other assets to be issued, traded, and transferred through a shared digital ledger.
The new system is expected to accelerate transactions, increase automation, and reduce reliance on intermediaries. The ECB has stated that Pontes will bring the stability and trust of central-bank money to the European tokenised finance ecosystem.