The European Central Bank has launched Pontes, a new Eurosystem infrastructure that connects distributed ledger technology (DLT) platforms with TARGET Services, allowing tokenised wholesale transactions to settle in central-bank money. The system went live on 21 September 2026 and is aimed at financial institutions and market infrastructure providers rather than consumers, distinguishing it from the digital euro project being developed for retail payments.
The launch was marked by a roundtable in Frankfurt, Germany, where ECB officials presented the new infrastructure to market participants. Pontes, the Latin word for ‘bridges’, connects financial-market platforms that use DLT with the Eurosystem’s existing TARGET Services, enabling transactions involving tokenised assets to settle using central-bank money rather than relying solely on privately issued settlement assets.
Addressing settlement in tokenised markets
Tokenisation refers to the representation of financial assets, such as bonds or deposits, as digital tokens recorded and transferred on distributed ledgers. The technology was developed to support issuance, trading, settlement, custody, and servicing within connected digital infrastructure, with smart contracts able to automate parts of these processes.
The Eurosystem has identified a structural issue: tokenised securities still require a trusted settlement asset for the cash leg of a transaction. In addition, its tokenisation strategy is therefore centred on keeping central-bank money accessible as financial-market infrastructure evolves. Rather than replacing existing settlement systems, Pontes is designed to provide interoperability between DLT platforms and TARGET Services, allowing wholesale transactions on new market infrastructure to settle against Eurosystem central-bank money.
Commenting on the announcement, Marius Jurgilas, CEO at Axiology, said:
Pontes is a major step towards bringing tokenised securities into mainstream capital markets. Giving institutions a way to settle tokenised securities in central bank money removes one of the biggest practical barriers to broader adoption. Institutions no longer have to choose between using new DLT infrastructure and settling in central bank money. Connecting the two gives tokenised securities the trusted cash leg they need to scale. But putting the rails in place is only the first step. Europe now needs issuance, investment, and liquidity to follow. As more financial activity moves onto digital infrastructure, Europe needs to make sure the euro remains at the heart of its tokenised capital markets
Extensive testing preceded the launch
Pontes follows an extensive testing programme. Between May and November 2024, the Eurosystem worked with 64 market participants on more than 50 trials and experiments examining how DLT-based wholesale transactions could settle in central-bank money. The programme combined real settlement in central-bank money with simulated transactions, covering different models for connecting distributed ledgers to central-bank settlement infrastructure. According to the ECB, more than EUR 1.5 billion in transactions were processed during the testing phase, generating technical, operational and legal input that informed the design of Pontes.
Following the testing phase, the Eurosystem adopted a two-track approach to tokenised financial markets. Pontes represents the near-term operational component, giving market participants access to central-bank money while a longer-term architecture is still under development. Furthermore, the second initiative, Appia, is intended to examine how an integrated European financial ecosystem based on tokenisation and DLT could eventually be structured, with a blueprint for the future ecosystem expected in 2028. The ECB has described the two projects as complementary, with Pontes addressing immediate market demand through interoperability and Appia exploring whether Europe requires a more integrated tokenised financial infrastructure over the longer term.
Distinct from the digital euro
The ECB has said that central-bank money should remain the anchor for settlement, even as private settlement assets such as tokenised commercial-bank deposits and regulated stablecoins take on a larger role in DLT-based markets. Pontes is intended to preserve that anchor role while allowing banks and market infrastructures to test new technology, with the service expected to be developed progressively rather than appearing as a complete system at launch.
Pontes is separate from the proposed digital euro, which would be available to individuals and businesses for everyday payments and remains subject to the EU legislative process. In addition, Pontes does not require consumers to open digital-euro wallets and does not create a new retail currency. Instead, it operates within wholesale financial markets, addressing how banks and market infrastructures can continue settling transactions in central-bank money as the assets involved increasingly move onto distributed ledgers.
