Pontes enables tokenized asset settlement in central bank money
Market participants can now settle tokenized financial asset transactions in central bank money following the Eurosystem's launch of Pontes on September 21. The first operational phase builds on multi-party trials conducted throughout 2024.
Risk-free settlement on the ledger
On September 21, the Eurosystem initiated the first phase of Pontes to support distributed ledger technology across financial markets.
The system provides market participants with a secure mechanism to settle tokenized assets using risk-free central bank money.
This rollout follows extensive preparatory trials conducted in 2024 across public and private sector institutions.
A preliminary cohort of commercial banks, financial infrastructures and technology operators has completed onboarding, with additional entities scheduled to connect over the coming months.
European Central Bank Executive Board member Piero Cipollone noted that Pontes delivers “the stability and trust of central bank money” to tokenized markets.
The broader path to Appia 2028
The launch forms part of a broader Eurosystem modernization strategy aimed at facilitating wholesale financial transformation.
Distributed ledger technology enables process automation and tighter lifecycle integration for financial instruments, improving market efficiency.
In parallel, central banks and private participants continue developing Project Appia.
That initiative aims to define a comprehensive reference model for an integrated European digital financial ecosystem based on distributed ledgers by 2028.
Sound plumbing awaits market volume
The Eurosystem prudently defends its monetary anchor by embedding central bank money into DLT environments.
Yet the true utility of Pontes depends on banks scaling tokenized asset issuance beyond small cohorts.
Until secondary market liquidity emerges, this remains sound plumbing in search of meaningful trading volume.