ECB Unveils Pontes Platform for Tokenized Securities Settlement
The European Central Bank (ECB) has launched Pontes, its digital platform for settling tokenized securities transactions using central bank money.
Pontes allows banks to settle tokenized asset trades in central bank money instead of commercial bank money, potentially making transactions faster and more efficient by combining issuance, trading, settlement, custody, and servicing into fewer steps. Smart contracts can also automate parts of the process.
The ECB has onboarded Deutsche Bank, Santander, and Société Générale as participants in Pontes, with more institutions expected to join in the coming months. The full rollout is targeted for completion by 2028.
The ECB's own funds will also be invested in euro-denominated tokenized bonds through Pontes, with the central bank aiming to gain direct experience in trade execution, settlement, technology systems, and portfolio management. This investment will target securities issued by euro-area central and regional governments, agencies, and European supranational institutions.