ECB Launches Pontes Settlement Network for Tokenized Assets

The European Central Bank (ECB) has launched 'Pontes', a system that allows financial institutions to settle tokenized assets using central bank money without relying on privately issued stablecoins. This move is part of the ECB's strategy to directly secure the role of public settlement instruments within blockchain-based financial infrastructure.

Pontes enables financial institutions to process transactions on distributed ledger technology (DLT) networks, providing access to risk-free settlement assets that are decisive for tokenized finance to gain traction. The system was built on findings from the Eurosystem's 2024 experiments on settling DLT-based transactions with central bank money.

ECB Executive Board member Piero Cipollone stated that 'Pontes brings the stability and trust of central bank money to the European tokenized finance ecosystem,' which will provide a key advantage as the ecosystem scales. The system's core functionality is now operational, with plans to phase in expanded service scope, operating hours, and participating institutions through 2028.