Eurosystem brings central bank money to tokenised finance

The Eurosystem recently launched Pontes, a new solution designed to facilitate tokenised asset transactions using central bank money. This marks the first initiative under the Eurosystem's strategic programme to adapt central bank money to a tokenised financial future and foster the growth of this rapidly evolving financial ecosystem.

ECB President Christine Lagarde emphasized the importance of this development, stating that the Eurosystem aims to create a more integrated, innovative, and resilient European financial market in the digital age. Tokenisation, the process of representing assets as digital tokens on distributed ledger technology (DLT) networks, has the potential to expedite and automate various financial processes, including asset issuance, trading, and settlement.

Pontes builds upon the outcomes of the Eurosystem's 2024 tests using DLT for central bank money settlement, which highlighted the need for a risk-free settlement asset to promote wider adoption of this new technology. Initially, Pontes will offer a core set of services, with additional features and extended operating hours planned for gradual implementation by 2028.

The solution will initially attract a group of market participants and DLT operators, demonstrating confidence in its transformative potential for Europe. The Eurosystem will continue to support this transformation and enhance Pontes in response to evolving market needs. For more information, visit the ECB's website or contact Alessandro Speciale for media inquiries.