Eurosystem Launches Pontes for Tokenized Asset Settlement
The European Central Bank (ECB) has launched Pontes, a solution that enables financial institutions to settle wholesale transactions in tokenized assets using central bank money. This move is part of the Eurosystem's strategic programme to make central bank money compatible with tokenized assets.
Pontes aims to provide a risk-free settlement asset for tokenized trades, which can speed up and lower the cost of wholesale trades. The solution builds on tests conducted by the Eurosystem in 2024, during which public and private stakeholders emphasized the need for access to a risk-free settlement asset for wider adoption.
The participation of major banks, including Deutsche Bank, Santander, Société Générale, and the European Investment Bank, alongside DLT operators such as Clearstream and Cashlink, will help drive adoption as the Eurosystem expands Pontes through 2028.