The European Central Bank has taken a step towards bringing blockchain technology into Europe’s mainstream financial infrastructure by launching a new service that connects its payment system with blockchain-based markets.
Called Pontes, the service allows banks and investors to settle transactions involving tokenized assets using euros backed by the ECB, rather than privately issued digital currencies such as stablecoins. The move is part of the central bank’s broader effort to adapt financial infrastructure to the growing use of distributed ledger technology.
Pontes is designed to provide central bank money as the settlement asset for wholesale transactions conducted on distributed ledgers. The ECB said the system could make financial transactions faster and more efficient by bringing several stages of an asset’s lifecycle closer together, including issuance, trading and settlement.
The platform initially operates on business days between 8 AM and 4 PM. Central European Time. The ECB plans to gradually expand its functionality and operating hours, with full implementation expected by 2028.
Deutsche Bank, Santander and Clearstream are among the first institutions to have completed onboarding for the new service. Other banks and financial market infrastructures are expected to join as the platform develops.
Alongside Pontes, the ECB said it is preparing to invest a small portion of its own funds in tokenized securities. The initial focus will be on euro-denominated debt issued by euro area governments, regional authorities, agencies and European supranational institutions.
The central bank said the investment will give it practical experience with distributed ledger technology across activities including trade execution, settlement and portfolio management. The move does not involve buying cryptocurrencies; the planned investments concern tokenized financial securities.
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The ECB’s initiative comes as other central banks also examine how blockchain and tokenization could reshape financial markets. The Swiss National Bank is running Project Helvetia, while the Bank of England is testing distributed ledger technology through its Digital Securities Sandbox.
The ECB is also developing a retail digital euro for consumers, with a potential launch targeted for 2029. Together, these projects form part of the bank’s wider strategy to keep central bank money relevant as financial markets move towards tokenized and increasingly digital infrastructure.