ECB launches Pontes to link DLT securities with central bank money
The European Central Bank launched Pontes, a link that lets transactions recorded on distributed ledgers settle using euro central bank money via the Eurosystem's TARGET Services. The infrastructure connects eligible DLT platforms to the cash leg of tokenized bonds and other digital securities, and Deutsche Bank, Santander and Clearstream are initial participants. The ECB also plans to allocate part of its roughly €23 billion own-funds portfolio to highly rated euro-denominated digital public-sector securities, giving it direct exposure. Pontes follows a 2024 exploratory phase that settled €1.59 billion but initially runs on defined hours and lacks full DLT programmability.
Pontes enables DLT securities to settle in euro central bank money.
Context
The ECB ran 2024 trials that settled €1.59 billion and involved 64 participants. Pontes now connects those DLT transactions to TARGET Services, and the eurosystem may expand features or availability later.
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