ECB Taps Blockchain with Pontes Launch and Digital Securities Bet

The European Central Bank (ECB) has launched 'Pontes,' a blockchain service connecting its payment system to digital markets. The regulator will also invest some of its €23 billion in own funds into blockchain-based securities.

Pontes enables banks and investors to settle transactions involving euro-backed assets on the blockchain, reducing reliance on private money like stablecoins. Initial users include Deutsche Bank, Santander, and Clearstream.

The ECB believes that blockchain can streamline processes by automating several stages of an asset's life cycle, making transactions faster and cheaper.