ECB Taps Blockchain for Faster Transactions and Efficient Asset Management
The European Central Bank (ECB) has launched a new service called Pontes, which links its payment system to blockchain-based financial markets. This move is part of a broader effort by central banks to adapt to the growing use of blockchain in finance.
Pontes allows banks and investors to settle blockchain-based transactions using euros backed by the ECB, rather than stablecoins or other forms of private money. The ECB said that a first group of users, including Deutsche Bank, Santander, and Clearstream, had completed onboarding and would be able to use Pontes from the start.
The platform will initially operate between 8 a.m. and 4 p.m. CET (0600-1400 GMT) on business days and expand its services over time. The ECB said that this technology has the potential to make transactions faster and more efficient by bundling multiple steps of an asset's lifecycle and enabling automation.
The ECB is also investing a tiny part of its €23 billion own funds in blockchain-based securities, focusing on highly rated, euro-denominated debt issued by public institutions. This move reflects the central bank's efforts to reduce reliance on private alternatives and increase efficiency in financial transactions.