ECB Taps Blockchain with Pontes Service Linking Payment System

The European Central Bank (ECB) has launched a new service called Pontes, linking its payment system to blockchain-based financial markets. The move reflects 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. A first group of users, including Deutsche Bank, Santander, and Clearstream, have completed onboarding and will 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 this technology has the potential to make transactions faster and more efficient by bundling multiple steps of an asset's lifecycle.

The ECB will also invest 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 investment is part of a two-track strategy alongside the Appia project aiming to create a comprehensive blueprint for a European tokenized asset ecosystem.

The ECB is also working on a digital euro for consumers, partly to wean the bloc off US credit cards, and aims to launch it in 2029. Other central banks are pursuing similar initiatives, such as the Swiss National Bank's Project Helvetia and the Bank of England's Digital Securities Sandbox.