ECB Launches Pontes to Settle Tokenized Assets in Central Bank Money
by Maisie Morrison · BlockonomiTLDR
Table of Contents
- The Eurosystem launched Pontes on September 21, giving banks a live route to settle tokenized securities using central bank money.
- Deutsche Bank, Santander, Société Générale and the European Investment Bank have already completed onboarding.
- The ECB plans to invest part of its own funds in tokenized securities, with purchases settling through Pontes.
- Full implementation of Pontes is targeted for 2028, with services expanding gradually.
- Pontes is separate from the ECB’s digital euro project, which targets a retail pilot in 2027.
The European Central Bank has switched on a new system called Pontes. It lets banks settle tokenized asset transactions using central bank money.
The launch happened on September 21, 2026. It is the first step in the Eurosystem’s plan to bring tokenized finance into its core payment systems.
Tokenization means turning assets like bonds into digital tokens. These tokens are usually recorded on distributed ledger technology, or DLT.
What Pontes Does
Pontes connects DLT market platforms to the Eurosystem’s existing TARGET settlement services. This allows tokenized securities trades to be completed using central bank money instead of private funds.
Banks have said that access to this kind of risk-free settlement asset was a major hurdle for tokenized markets. The Eurosystem tested this idea in 2024 before building Pontes.
A group of banks has already finished onboarding to the system. That group includes Deutsche Bank, Santander, Société Générale and the European Investment Bank.
DLT operators have also joined. These include Clearstream, Axiology, Cashlink and SWIAT.
More banks and platforms are expected to connect in the coming months. The ECB has not confirmed any completed live settlements since the launch.
Christine Lagarde, president of the ECB, said the goal is a more integrated and innovative European financial market. She said the bank will keep working closely with the market as Pontes develops.
Piero Cipollone, a member of the ECB’s Executive Board, said Pontes brings the stability of central bank money to Europe’s tokenized finance system. He said this gives the system an advantage as it grows.
The ECB’s Own Investment Plans
The ECB is not just building the settlement system. It is also preparing to use it.
The central bank plans to invest part of its own funds into tokenized securities. These would include euro-denominated bonds from euro-area governments, regional governments, agencies and European institutions.
The ECB said this will give it direct experience with trade execution, settlement, technology and portfolio management on the new rail. The size and timing of these purchases have not been disclosed yet.
The ECB’s own funds were worth 23.1 billion euros at the end of 2025. Government debt made up 73% of that portfolio.
These funds are separate from the ECB’s monetary policy holdings. They generate income that helps cover the bank’s operating costs.
Pontes will start with a limited set of services. The ECB plans to expand features and operating hours over time, with full implementation expected by 2028.
Pontes is separate from the digital euro, a project aimed at consumers rather than banks. The ECB plans a 12-month retail pilot for the digital euro starting in the second half of 2027.
That pilot would involve 36 payment service providers, merchants and central bank staff. A possible first issuance of the digital euro is targeted for 2029, pending new legislation.
Wider work on tokenized finance continues under a separate initiative called Appia. It involves the Eurosystem, Danmarks Nationalbank and other stakeholders, with a blueprint for an integrated system due by 2028.
For now, the next step for Pontes is usage. Banks that have already onboarded must decide which transactions to route through the system in the weeks ahead.