ECB Tests Settlement of 1.6 Billion Euros in Tokenized Markets

The European Central Bank (ECB) is advancing the incorporation of central bank money into financial markets based on distributed ledger technology (DLT). The goal is to allow stablecoins and tokenized deposits to coexist with ECB money. Piero Cipollone, a member of the ECB's Executive Board, states that tokenized asset markets require settlement mechanisms backed by central bank money. In 2024, the ECB conducted over 50 settlement tests across nine jurisdictions, showing interest in using central bank money instead of relying solely on stablecoins or private instruments. In this context, Pontes is introduced, a project set to launch in the third quarter of 2026, which will connect DLT platforms with the Eurosystem's TARGET services, enabling settlements with euro reserves at the central bank. Pontes is part of a broader strategy called Appia, which aims to develop a tokenized European financial ecosystem by 2028, facing the challenge of ensuring interoperability between DLT networks. By the end of March 2026, the Eurosystem will begin accepting certain DLT-issued assets as collateral for monetary policy operations, marking a step towards their integration into traditional financial infrastructure. The ECB aims for the transition to tokenized markets not to replace central bank money with private alternatives.

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