Eurosystem Launches Pontes for Central Bank Money in Tokenised Finance

The European Central Bank (ECB) has launched Pontes, a solution that enables wholesale transactions in tokenised assets to be settled in central bank money. This marks the first step in implementing the Eurosystem's strategy for tokenised finance.

Pontes builds on the outcome of the Eurosystem's 2024 tests using distributed ledger technology (DLT) for central bank money settlement, during which stakeholders from the public and private sectors indicated that access to a risk-free settlement asset was crucial for the wider adoption of this new technology.

'The Eurosystem is working to enable a more integrated, innovative and resilient European financial market in the digital age,' said Christine Lagarde, president of the ECB. 'We will continue to make progress in close collaboration with the market.'