The Eurosystem has launched Pontes, a platform for settling wholesale tokenised asset transactions in central bank money.
It is part of a wider Eurosystem strategy to make central bank money fit for a tokenised future.
The launch builds on exploratory DLT tests the Eurosystem ran in 2024. Participants in those tests said a risk-free settlement asset was essential for wider adoption.
DLT technology has the potential to make transactions faster and more efficient. It can bundle several stages of an asset’s lifecycle onto one platform.
These include issuance, trading, settlement, custody and servicing. Smart contracts can also automate parts of the process.
“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.
“Pontes brings the stability and trust of central bank money to the European tokenised finance ecosystem,”
said Piero Cipollone, member of the ECB’s Executive Board.
The platform will start with a core set of services. Enhanced features and longer operating hours will follow. Full implementation is expected by 2028.
An initial group of market participants and DLT operators has completed onboarding and can use Pontes immediately. More participants have committed to connecting in the coming months.
The Eurosystem’s longer-term framework for DLT-based financial services continues under a separate track called Appia.
The initiative involves Danmarks Nationalbank and other stakeholders. A blueprint is due by 2028.
Featured image: Edited by Fintech News Switzerland, based on an official Christine Lagarde portrait by the European Union via Wikimedia Commons and gzorgz via Magnific.
