Cipollone urges T+1 readiness as tokenised settlement expands
Europe will shorten securities settlement from two days to one on October 11, 2027. European Central Bank (ECB) Executive Board member Piero Cipollone urged implementation and testing while setting out plans to expand settlement of tokenised assets in central bank money.
One day demands tighter processes
Speaking at the EU T+1 Industry Committee event in Frankfurt, Cipollone said shorter settlement reduces market and counterparty risk while requiring standardisation and automation.
The ECB, European Securities and Markets Authority and European Commission support preparations.
TARGET2-Securities (T2S) already settles transactions on T+1 and T+0 schedules, exchanging cash and securities simultaneously in central bank money.
Changes to night-time settlement are planned for June 2027, ahead of October migration.
Cipollone urged continued cooperation between authorities and market participants.
He linked more efficient post-trade processes to cross-border capital flows, market access and European competitiveness.
Pontes extends the settlement clock
Since March 30, 2026, eligible collateral includes marketable assets issued in depositories using distributed ledger technology (DLT); broader eligibility remains under assessment.
Since September 21, Pontes connects market DLT platforms to TARGET Services for central bank money settlement.
Plans extend operating hours by mid-2027, introduce immediate finality on the Eurosystem DLT platform as early as 2027 and provide 24/7/365 availability in 2028.
Appia targets a 2028 blueprint for an integrated tokenised ecosystem; consultation feedback supports public-private cooperation.
Coexistence, not replacement
Cipollone said T2S will remain in use alongside tokenised platforms suited to different functions.
The Eurosystem intends to connect existing and new infrastructure while retaining settlement in central bank money.
Its stated objective is to overcome fragmentation rather than recreate it digitally.