ECB Taps Blockchain for Faster Transactions

The European Central Bank has launched a new service called Pontes that links its payment system to blockchain-based financial markets.

Pontes allows banks and investors to settle transactions using euros backed by the ECB, rather than stablecoins or other forms of private money.

The ECB said it will also begin investing some of its €23 billion own funds in highly rated, euro-denominated debt issued by public institutions on blockchain-based securities.

This move reflects a broader effort by central banks to adapt to the growing use of blockchain in finance, with other banks such as the Swiss National Bank and the Bank of England pursuing similar initiatives.