ECB Prepares to Invest in Tokenised Securities

The European Central Bank (ECB) has launched preparatory work to invest in tokenised securities, aiming to gain practical experience as an investor and build expertise in distributed ledger technology (DLT).

The ECB will use its own funds portfolio to make the investments, which will focus on euro-denominated securities issued by euro area central governments, regional governments, agencies, and European supranational institutions.

These transactions will be settled in central bank money via Pontes, the Eurosystem's settlement solution for DLT transactions.