ECB Launches Pontes for Blockchain Settlement in Central Bank Money

Key Takeaways

• The European Central Bank has launched Pontes to connect distributed-ledger platforms with the Eurosystem’s TARGET payment infrastructure.
• Banks can use this service to settle tokenized asset transactions in central bank money instead of stablecoins or other private settlement assets.
• The ECB also plans to invest a small part of its €23 billion own-funds portfolio in highly rated tokenized securities.

The European Central Bank launched Pontes on September 21, 2026, connecting blockchain-based financial markets with the Eurosystem’s existing payment infrastructure, it said in a statement.

Pontes allows banks and financial institutions to settle wholesale transactions involving tokenized assets in euro central bank money. This reduces the need to rely on stablecoins or other forms of private money for the cash side of blockchain transactions.

“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.”

— Coin Bureau (@coinbureau) Sep 21, 2026

Pontes links distributed-ledger technology (DLT) platforms with the Eurosystem’s TARGET Services. The ECB said tokenization could make financial transactions more efficient by bringing issuance, trading, settlement, and other parts of an asset’s lifecycle closer together while enabling automation through smart contracts.

Deutsche Bank, Santander Join Pontes

An initial group of financial institutions has already completed onboarding.

Participants include Deutsche Bank, Santander, the European Investment Bank, Société Générale, and KfW, while infrastructure providers such as Clearstream, Cashlink, and SWIAT are also connected.

Pontes will initially operate from 8 a.m. to 4 p.m. CET (O600-1400 GMT) on business days, and expand its services over time, Reuters reported.

“Pontes brings the stability and trust of central bank money to the European tokenized finance ecosystem,” said Piero Cipollone, member of the ECB’s Executive Board. “It will give an important advantage to help it scale.”

ECB Plans to Buy Tokenized Bonds

The ECB said it would also begin investing a small portion of its €23 billion own-funds portfolio in tokenized securities.

Initial investments will focus on highly rated, euro-denominated debt issued by public institutions. These transactions will be settled through Pontes.

The planned investments aim to give the ECB practical experience in trading, settling, and managing tokenized securities.

In an August 28 speech, ECB board member Isabel Schnabel said central banks should “go on-chain,” arguing this would reduce reliance on private alternatives.

Other European central banks are pursuing similar initiatives.

The Swiss National Bank’s Project Helvetia explores ways to settle tokenized assets in central bank money. In the UK, the Bank of England and Financial Conduct Authority Jointly operate the Digital Securities Sandbox, allowing firms to test digital securities infrastructure in a regulated environment.

Alongside Pontes, the ECB’s broader Appia Initiative is developing a longer-term framework for an integrated European tokenized financial market, targeted for 2028.

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