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Eurosystem launches Pontes to settle tokenized assets in central bank money
The Pontes platform will roll out core services first, with enhanced features and longer operating hours introduced gradually, and full implementation expected by 2028.
The Eurosystem launched Pontes, a new solution designed to let wholesale transactions in tokenized assets be settled in central bank money. The initiative is described as the first under the Eurosystem’s strategic program to make central bank money work for a tokenized future and to support growth in tokenized finance across Europe.
Christine Lagarde, president of the ECB, said the Eurosystem is working toward a more integrated, innovative, and resilient European financial market in the digital age, and will keep progressing in collaboration with market participants. The ECB said tokenisation, which issues or represents assets as digital tokens recorded on distributed ledger technology networks, can make parts of the asset lifecycle faster and more efficient by bundling steps such as issuance, trading, settlement, custody, and servicing, including automation via smart contracts.
Pontes is built on the outcome of the Eurosystem’s 2024 tests using DLT for central bank money settlement. Those tests found that access to a risk-free settlement asset was crucial for wider adoption, according to the ECB.
Pontes will initially provide a core set of services, with enhanced features and longer operating hours to be introduced gradually, and full implementation expected by 2028. The ECB said an initial group of market participants and DLT operators has completed onboarding and is ready to use Pontes, with additional participants committed to connecting in the coming months.