Launch of the Pontes settlement platform

The European Central Bank and the national central banks of the euro area launched the Pontes settlement platform on 21 September 2026, establishing a technical link between distributed ledger networks and central bank money. The system enables financial institutions to settle wholesale transactions in tokenized assets using risk-free euro liquidity. Traditional securities trading requires a chain of intermediaries across exchanges, clearing houses, and specialized custodian banks, whereas tokenization combines issuance, trading, clearing, and servicing into automated procedures using smart contracts. Pontes builds on experimental trials conducted by the Eurosystem in 2024, in which public and private participants concluded that access to central bank money was essential for the wider adoption of distributed ledger technology. A preliminary group of financial institutions, including Deutsche Bank, BayernLB, DZ Bank, KfW, and the European Investment Bank, have joined or completed onboarding preparations. ECB Executive Board member Isabel Schnabel previously outlined the strategic plan during the central banking symposium in Jackson Hole.

Direct central bank investment in tokenized bonds

In parallel with the platform launch, the central bank announced plans to invest a portion of its own funds portfolio directly into tokenized debt securities. These initial investments will target euro-denominated bonds issued by euro area central and regional governments, European agencies, and supranational institutions. The allocated capital comes from the ECB's own funds portfolio, an operational reserve whose investment returns fund the institution's running expenses rather than monetary policy interventions. Central bank officials decided to enter the market directly as an investor to build practical institutional expertise across the entire transaction lifecycle, spanning trade execution, settlement verification, custody administration, and position risk management. The ECB Executive Board will determine the precise investment volume and timeline as the volume of tokenized debt issuances develops across European markets.

ECB President Christine Lagarde stated that the initiative aims to strengthen the integration of European financial infrastructure.

“The Eurosystem is working towards promoting a more integrated, innovative and resilient European financial market in the digital age.”

Wholesale infrastructure and the retail digital euro

Pontes begins operations with a core set of settlement services, with enhanced features and extended operating hours scheduled for phased introduction through full deployment in 2028. The platform represents one branch of the Eurosystem's digital ledger strategy, operating alongside Project Appia, which is tasked with drafting a comprehensive blueprint for European tokenized finance. This wholesale architecture addresses business-to-business settlements among commercial lenders, complementing existing payment mechanisms such as the Target interbank settlement system. The wholesale program remains administratively distinct from the retail digital euro project, which focuses on consumer payment applications and targets potential delivery around 2029.

ECB Executive Board member Piero Cipollone noted that the system introduces central bank stability to digital asset markets.

“Pontes brings the stability and trust of central bank money to the European ecosystem of tokenized finance.”