ECB Prepares to Invest in Tokenized Securities via Pontes

The European Central Bank (ECB) has announced plans to invest in tokenized securities as part of its efforts to gain practical experience with distributed ledger technology.

The ECB will allocate a limited portion of its non-monetary policy own funds portfolio to tokenized securities, which will be settled in central bank money through the Pontes settlement framework.

The initial focus will be on euro-denominated securities issued by euro area governments, agencies, and supranational institutions. This move is designed to support the ECB's wider strategy for settling tokenized assets in central bank money.