Pontes programme to connect market DLT platforms with TARGET
Financial digitalization requires central bank money to anchor tokenized asset settlement and preserve market stability. Opening the 2026 Innovation Financial Forum, the speaker highlighted the Eurosystem Pontes project connecting DLT platforms with TARGET.
Bridging TARGET and distributed ledgers
Asset tokenisation risks fragmenting financial markets unless transactions can settle in central bank money at par value.
The Eurosystem Pontes programme aims to resolve this vulnerability by connecting market distributed ledger technology (DLT) platforms directly to the TARGET settlement infrastructure.
While tokenisation promises faster execution, automated processing and enhanced traceability, relying exclusively on private payment assets introduces credit and liquidity risks.
The speaker emphasized that electronic money, stablecoins and tokenised deposits carry distinct reserve and governance profiles that cannot replace the trust provided by central bank currency.
Intermediaries in the digital landscape
Following Bulgaria’s recent adoption of the euro, the integration of new technologies tests the resilience of the broader European financial architecture.
Commercial banks face an active operational role distributing the digital euro and participating in tokenised money models.
Meanwhile, artificial intelligence and large language models are transforming internal workflows, requiring enhanced governance, robust data management, cybersecurity protocols and human oversight.
Settlement anchor remains indispensable
Connecting private DLT platforms to TARGET is the only viable safeguard against liquidity fragmentation in digital finance.
Central banks rightly insist on anchoring tokenised assets in risk-free public money.
Without strict interoperability standards, technical innovation will merely create new systemic blind spots.
Source: Statement - 2026 Innovation Financial Forum
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