ECB launches Pontes for tokenized-asset settlements in central-bank money

The European Central Bank launched Pontes on Monday to enable banks and other eligible financial institutions to settle tokenized-asset transactions in central-bank money. ECB President Christine Lagarde announced the platform's go-live at a Eurogroup meeting on Friday. Lagarde described Pontes as a digital euro for banks to transact with each other using tokenized assets and distributed-ledger technology. Pontes links market distributed-ledger technology platforms with the Eurosystem's TARGET Services. The platform will be available only to eligible financial institutions and market infrastructure providers. It provides a central-bank-money option for settling the cash side of trades involving tokenized bonds, funds and other financial assets, rather than requiring institutions to rely solely on stablecoins or tokenized commercial-bank deposits. Pontes is part of the ECB's effort to keep central-bank money central to Europe's increasingly tokenized financial markets. The ECB said Pontes will be developed in stages alongside its longer-term Appia initiative for wholesale tokenization. Pontes is separate from the retail digital euro, which is scheduled for a one-year pilot beginning in the second half of 2027 ahead of possible issuance in 2029.