Pontes
Pontes is the Eurosystem's distributed ledger technology (DLT) solution linking market DLT platforms with TARGET Services so DLT-based wholesale transactions can be settled in central bank money.[1][2][3][4]
Purpose and operation
Pontes connects market infrastructures that use DLT with TARGET Services, allowing the cash side of eligible wholesale transactions to settle in central bank money. It is intended for financial institutions and market infrastructures rather than consumer payments.[5][6]
Launch and development
The Eurosystem launched the initial Pontes service on 21 September 2026. The service began with a core set of functions; enhanced features and longer operating hours are being introduced gradually, with full implementation expected by 2028.[7][8]
At launch, the ECB reported an initial group of 13 market participants and four market DLT operators. The related Appia initiative is intended to develop a broader European ecosystem for DLT-based financial services.[9][10]
Planned ECB use
On 21 September 2026, the ECB announced preparatory work to invest a small portion of its own funds in tokenised securities, with purchases to be settled through Pontes. Initial investments are intended to focus on euro-denominated securities issued by euro-area central governments, regional governments, agencies and European supranational institutions. The own-funds portfolio is separate from monetary policy; the ECB Executive Board is to decide the operational details and timing after the preparatory work is complete.[11][12]
Relation to the digital euro
Pontes serves wholesale financial markets, while the digital euro is a separate retail project aimed at consumer payments.[13][14]
References
- ↑ Pontes, European Central Bank
- ↑ Eurosystem brings central bank money to tokenised finance, European Central Bank
- ↑ ECB deploys Pontes platform to settle wholesale tokenized assets in central-bank money, CoinDesk
- ↑ ESM statement on the launch of ECB’s Pontes initiative
- ↑ Pontes, European Central Bank
- ↑ ECB deploys Pontes platform to settle wholesale tokenized assets in central-bank money, CoinDesk
- ↑ Eurosystem brings central bank money to tokenised finance, European Central Bank
- ↑ ECB launches Pontes to settle tokenised assets in central bank money, Euronews
- ↑ Eurosystem brings central bank money to tokenised finance, European Central Bank
- ↑ ECB deploys Pontes platform to settle wholesale tokenized assets in central-bank money, CoinDesk
- ↑ ECB to invest part of own funds in tokenised securities, European Central Bank
- ↑ ECB launches Pontes to settle tokenised assets in central bank money, Euronews
- ↑ ECB deploys Pontes platform to settle wholesale tokenized assets in central-bank money, CoinDesk
- ↑ ECB launches Pontes to settle tokenised assets in central bank money, Euronews