ECB Launches Pontes to Let Banks Settle Tokenized Assets in Central-Bank Money

What Pontes Does for Banks

The European Central Bank launched Pontes on September 21, 2026. The system connects banks and financial platforms that use distributed-ledger technology with the Eurosystem's existing TARGET settlement services. This lets institutions settle tokenized securities using central-bank money rather than private alternatives.

André Dragosch from Bitwise Europe described Pontes as essentially the digital euro made available for banks. Financial institutions can now settle tokenized transactions with each other while using the safest form of money available.

Initial Participants

Several major institutions have completed onboarding to Pontes. Deutsche Bank, Santander, Société Générale, and the European Investment Bank are among the first users. Distributed-ledger technology operators including Clearstream, Axiology, Cashlink, and SWIAT have also joined the system. More banks and market operators are expected to connect over the coming months.

ECB Plans Own Tokenized Purchases

The ECB said it is preparing to invest a small portion of its own funds in tokenized securities through Pontes. The initial purchases will focus on euro-denominated tokenized securities issued by euro-area central governments, regional governments, agencies, and European supranational institutions.

The ECB said using Pontes will give it practical experience in trade execution, settlement, technology systems, and portfolio management. The central bank has not disclosed the size of the tokenized allocation or when purchases will begin. Its own-funds holdings were worth €23.1 billion at the end of 2025, with government debt accounting for 73% of that portfolio.

The purchases are separate from monetary-policy operations and will not function as an interest-rate or quantitative-easing tool.

What Remains Unclear

The ECB has not identified a completed live settlement through Pontes since the September 21 launch. The size and timing of the ECB's first tokenized purchases have not been announced. The Executive Board will determine both after preparatory work is completed. No finalized tokenized securities transaction has been reported yet through the new system.

Timeline for Full Rollout

Pontes launches with a limited set of services. The system will add functionality and longer operating hours over time. Full implementation is targeted for 2028.

Separately, the ECB plans a 12-month retail digital euro pilot beginning in the second half of 2027 involving 36 payment-service providers, merchants, and central-bank staff. The target for a potential first issuance of the retail digital euro is 2029, subject to adoption of the necessary legislation.

Sources

• CryptoSlate

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