European Central Bank Launches Pontes Platform for Tokenized Asset Settlement
The Eurosystem has introduced a new mechanism allowing banks to settle tokenized asset transactions directly in central bank money rather than private stablecoins.
The European Central Bank has rolled out Pontes, a live settlement system enabling eurozone financial institutions to settle tokenized asset transactions using central bank funds instead of commercial stablecoins. ECB President Christine Lagarde announced the launch during a Eurogroup meeting on September 18, with executive board member Piero Cipollone attending the kickoff event in Frankfurt.
Unlike private settlement instruments such as stablecoins or tokenized commercial bank deposits, Pontes links distributed ledgers directly to the Eurosystem's TARGET Services infrastructure. This architecture ensures that the cash leg of a tokenized bond transaction is settled as a direct claim on the central bank, which regulatory authorities treat as the safest settlement medium.
Initial participation is limited to thirteen eurozone banks, including Deutsche Bank, Santander, and Société Générale, alongside four ledger operators and the European Investment Bank. The service currently operates between 8:00 AM and 4:00 PM Central European Time, with continuous operations scheduled for mid-2028, following a pilot phase that settled over €1.5 billion in trades.
The launch establishes central bank infrastructure in a domain targeted by private settlement assets, including Ripple's dollar-pegged RLUSD stablecoin, which holds a preliminary EU MiCA license and maintains approximately $2.4 billion in circulation across Ethereum and the XRP Ledger.
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