Europe's Central Banks Open Reserve Money to Tokenized Wholesale Markets
The European Central Bank has launched Pontes, a service that allows tokenized asset trades to settle in central bank money. This move is part of a broader plan to keep official reserves at the center of Europe's evolving tokenized financial system.
Pontes links private DLT networks to the Eurosystem's existing TARGET infrastructure, enabling transactions to be completed in risk-free reserves rather than commercial bank money or private tokens. The service begins with limited core functions and will expand its capabilities and operating hours over time, with a complete offering targeted for 2028.
The launch of Pontes marks a significant step towards building a more integrated, innovative, and resilient European market in the digital era. According to Christine Lagarde, President of the ECB, this initiative is part of an effort to build a better chance for tokenized finance to grow by introducing the stability and trust of central bank money into the ecosystem.