The ECB is advancing a targeted program to integrate tokenisation and distributed-ledger technology into Europe’s settlement rails through Pontes and Appia, aiming to create a scalable, cross-border system and a tokenised European asset market.

Led by Executive Board member Piero Cipollone, the ECB envisions an integrated European market for tokenised assets to prevent fragmentation in Europe’s capital markets.

Pontes will link the ECB’s TARGET Services with DLT platforms and, eventually, enable settlement finality on a Eurosystem-operated DLT, starting with a live rollout in late September 2026.

A key potential benefit is continuous-market operation, enabling near-simultaneous asset and money transfers under central-bank money and regulation, reducing settlement delays.

Programmable blockchain features could improve liquidity management and automated collateral in stress scenarios, enhancing nimbleness and crisis response.

By mid-2028 the infrastructure is expected to support cross-currency operations and continuous trading, weaving digital and traditional finance together.

ECB officials warn that central banks must adapt to digital change or risk losing influence to private digital platforms if euro-backed money isn’t included in the new rails.

Tokenisation enables assets to be represented as programmable digital files for around-the-clock finance, though risks include fragmentation from incompatible platforms.

Overall, the move signals a shift toward treating blockchain as a core component of monetary operations, with faster, cheaper, and more transparent settlements on the horizon.

Successful tokenised finance hinges on common standards, interoperability, public-private cooperation, and an integrated legal framework; competition should focus on services, quality, and price rather than incompatible standards.

At Jackson Hole, the ECB highlighted on-chain central bank money could automate transfers when conditions are met, boosting efficiency in securities settlement and conditional payments.

Pontes and Appia involve first-tier operators and a broader ecosystem, with DLT-linked settlement to become live and 24/7, starting with the connection of major platforms and Euroystem payment rails.