Eurosystem launches Pontes service for tokenized settlement
The Eurosystem has launched Pontes, a service connecting DLT platforms with TARGET infrastructure to settle tokenized wholesale transactions in central bank money.
The Pontes service for tokenized settlement is a new Eurosystem service launched on September 21, 2026. It connects market platforms using distributed ledger technology (DLT) with TARGET services, making it possible to settle tokenized wholesale transactions in central bank money.
The service is intended for regulated wholesale participants and DLT infrastructures. It is therefore not a retail digital euro or a general payment network for cryptocurrencies or ordinary users.
What the Pontes service for tokenized settlement offers
Pontes is intended to enable connections between tokenized financial instruments traded or recorded on DLT platforms and the Eurosystem’s existing payment infrastructure. Settlement in central bank money is particularly important for regulated markets because, compared with private settlement assets, it brings lower credit and liquidity risk.
In its initial phase, Pontes operates on a basic scale. The Eurosystem plans to gradually expand its functions and operating hours, with full implementation planned for 2028. The plans include 24/7 operation, which is to be introduced by mid-2028.
Participants prepared for the initial group include Deutsche Bank, Santander, Société Générale, the European Investment Bank (EIB), KfW, and operators Axiology, Cashlink, Clearstream, and SWIAT.
It is not a “stablecoin-free” system
The launch of Pontes does not mean that stablecoins will stop being used in Europe’s tokenized financial environment. Such a simplification would be misleading. Pontes offers the option of settling transactions in central bank money—an alternative to private tokens used as settlement assets.
The ECB also states that the system can support the settlement of stablecoins into fiat currency through DLT. Pontes is therefore not a rejection of stablecoins, but part of a model in which tokenized markets are connected to central bank money and the Eurosystem’s existing infrastructure.
Limited start, further data still unavailable
The initial deployment has a limited scope, and it has not yet been confirmed what volume of real transactions the service will process in its initial phase. The pace at which additional banks, central securities depositories, and DLT platform operators will connect is also unknown.
2028 should therefore be viewed as the planned date for full implementation, not as the current state. The first data on service usage, expanded operations, and the practical deployment of instant settlement finality will be important.
Alongside Pontes, the Eurosystem is also developing the Appia initiative. By 2028, it is intended to prepare a proposal for a broader architecture for Europe’s tokenized financial ecosystem. Pontes represents a practical step in testing interoperability between DLT markets and the existing central bank infrastructure.
Sources
- European Central Bank – Eurosystem brings central bank money to tokenised finance – Confirms the launch of Pontes on September 21, 2026, its purpose, gradual expansion, target year of 2028, and initial participants.
- European Central Bank – Pontes – Describes the architecture, dual settlement model, and restriction of participation to eligible regulated entities.
- European Central Bank – From vision to delivery: building Europe’s tokenised financial market – States the plan for 24/7 operation by mid-2028 and clarifies that Pontes can also support the settlement of stablecoins into fiat currency through DLT.
Verified and updated: September 21, 2026 15:20
