ECB Launches Pontes to Settle Tokenized Assets in Central Bank Money
The European Central Bank (ECB) has launched 'Pontes', an infrastructure that enables transactions in tokenized assets to be settled in central bank money. The system is designed to connect platforms using distributed ledger technology (DLT) to the Eurosystem's payment services.
Pontes allows banks and market infrastructures to settle transactions involving securities recorded on a blockchain using central bank money, resolving one of the main challenges facing tokenized finance. The ECB plans to invest a small portion of its own funds in these securities.
The initial group of participants has completed its connection and can start using the infrastructure immediately. Clearstream is among the first operators connected to Pontes, giving the project a direct link to Luxembourg.