ECB Links Payment System to Blockchain with Pontes Platform Launch
The European Central Bank (ECB) has launched a new platform called Pontes that connects its payment system to blockchain-based financial markets. This move reflects the central bank's effort to adapt to the growing use of blockchain in finance, which allows assets to be issued and traded using shared digital ledgers.
Pontes enables banks and investors to settle blockchain-based transactions using euros backed by the ECB, rather than stablecoins or other forms of private money. The new service is initially available between 8 a.m. and 4 p.m. CET on business days and will expand its services over time.
The ECB has also announced that it will invest some of its own funds in blockchain-based securities, focusing on highly rated euro-denominated debt issued by public institutions.