CryptoSlate
The Eurosystem launched Pontes on Monday, giving banks a live route to settle tokenized assets in central-bank money. The ECB is also preparing to invest a portion of its own funds in euro-denominated tokenized securities, with those purchases set to settle through Pontes. The system connects distributed-ledger platforms with the Eurosystem’s TARGET settlement services.
An initial group including Deutsche Bank, Santander, Société Générale and the European Investment Bank has completed onboarding, alongside DLT operators such as Clearstream, Axiology, Cashlink and SWIAT. More institutions are expected to connect over the coming months.
Why it matters
Pontes puts the ECB on both sides of Europe’s emerging tokenized-market infrastructure. It is providing the settlement rail while preparing to become a user of the market it wants financial institutions to adopt. Bitwise Europe Head of Research André Dragosch described the setup as the “digital euro made available for banks,” because institutions can settle tokenized transactions with each other while retaining central-bank money as the settlement asset.
The arrangement addresses one of the main obstacles identified in the Eurosystem’s 2024 DLT trials: access to central-bank money for securities issued and traded on distributed ledgers. Pontes launches with a limited set of services, with additional functionality and longer operating hours planned over time. Full implementation is targeted for 2028.
Market impact
The ECB’s planned purchases will initially focus on euro-denominated tokenized securities issued by euro-area central governments, regional governments, agencies and European supranational institutions. The central bank has not disclosed the allocation size or purchase date. Its own-funds portfolio was worth €23.1 billion at the end of 2025, with government debt representing 73% of holdings, but the tokenized allocation will be managed separately from monetary-policy portfolios.
No completed live settlement had been identified since Monday’s launch, making transaction volume the next test of adoption.
Frequently asked questions
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What is Pontes and what does it connect?
Pontes connects distributed-ledger market platforms with the Eurosystem’s existing TARGET settlement services, allowing tokenized securities to settle in central-bank money.
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Which institutions have joined Pontes at launch?
Deutsche Bank, Santander, Société Générale and the European Investment Bank are among the initial institutions onboarded. DLT operators include Clearstream, Axiology, Cashlink and SWIAT.
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What securities will the ECB buy through Pontes?
Initial purchases will focus on euro-denominated tokenized securities issued by euro-area central governments, regional governments, agencies and European supranational institutions.
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How large will the ECB’s tokenized allocation be?
The ECB has not disclosed the size or timing of the allocation. Its own-funds portfolio was worth €23.1 billion at the end of 2025, with government debt accounting for 73% of holdings.
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When is Pontes expected to reach full implementation?
Pontes launches with a limited set of services and is expected to add functionality and longer operating hours over time, with full implementation targeted for 2028.
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