ECB Pushes for Unified Tokenized Finance Market in Europe

The European Central Bank (ECB) is moving to create an integrated market for tokenised financial assets, with central bank money as the settlement anchor. ECB Executive Board member Piero Cipollone emphasized the need for a unified platform to avoid fragmented digital platforms that could divide assets and liquidity.

Cipollone highlighted two key projects: Pontes and Appia. Pontes aims to connect distributed ledger technology (DLT) platforms with TARGET Services, enabling tokenised transactions to settle in central bank money. The ECB plans to launch the service this year and expand it towards 24/7 operation by mid-2028.

Appia focuses on the wider architecture, standards, and governance needed for a European tokenised financial ecosystem. The ECB's roadmap aims to produce a blueprint for an integrated market by 2028, covering interoperability, cross-border transactions, collateral management, and the legal and regulatory framework.