- ECB’s Pontes settles tokenised asset trades in central bank money
- Deutsche Bank, Santander, Société Générale already onboarded
- Full Pontes rollout targeted for completion by 2028
The European Central Bank (ECB) launched Pontes on Monday, September 21, giving banks a live channel to settle tokenized securities transactions using central-bank money.
The Eurosystem simultaneously began preparing to invest a portion of its own funds in euro-denominated tokenized bonds, with purchases set to settle through the same system. The move puts the ECB on both sides of Europe’s emerging tokenized-market infrastructure.
What Pontes Does
Pontes lets tokenised assets settle in central bank money instead of commercial bank money.
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The ECB says this can make transactions faster by combining issuance, trading, settlement, custody and servicing into fewer steps. Smart contracts can also automate parts of the process.
Pontes builds on the Eurosystem’s 2024 DLT settlement tests. It is launching with a limited set of services, with more features and longer operating hours to be added over time. Full implementation is expected by 2028.
The first banks, financial institutions and DLT operators have already completed onboarding and can use Pontes. More participants are expected to join in the coming months.
ECB Prepares to Buy Tokenized Bonds With Its Own Funds
Initial ECB purchases will target euro-denominated tokenized securities issued by euro-area central and regional governments, agencies, and European supranational institutions. The central bank said using Pontes will give it direct experience in trade execution, settlement, technology systems, and portfolio management.
The ECB’s own-funds holdings stood at €23.1 billion at the end of 2025, with government debt making up 73% of the portfolio. The bank has not disclosed the size of the tokenized allocation or a start date for purchases, leaving those decisions to its Executive Board. These own funds are managed separately from monetary-policy portfolios and help finance the ECB’s operating expenses.
Retail Digital Euro Pilot Set for 2027
Europe is moving closer to a consumer-facing digital euro. The ECB plans to launch a 12-month retail pilot in the second half of 2027, involving 36 payment-service providers, merchants and central-bank staff.
A first digital-euro issuance could follow in 2029, but only if the necessary EU legislation is approved.
The Eurosystem is also developing Appia, a broader initiative aimed at creating a blueprint for an integrated European DLT financial ecosystem by 2028.
The Financial Times reported in 2025 that Ethereum and Solana were among the networks being considered as possible technical options, although the ECB has said no final decision has been made.
On the Flipside
- Pontes remains limited to wholesale institutional use, with no retail application announced.
- Full implementation stretches to 2028, meaning near-term functionality stays limited to core services.
- The initiative centers on regulated bank participants, offering no direct pathway for crypto-native DLT platforms outside this group.
Why This Matters
Pontes signals a major central bank’s direct engagement with tokenised markets, potentially accelerating institutional adoption of DLT-based settlement infrastructure across Europe. It could set a precedent other central banks weigh as tokenisation gains traction globally.