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Key Notes
- ECB to launch blockchain settlement pilot under the Pontes initiative by late 2026.
- Pilot will enable DLT transactions to settle with central bank money.
- Two-track approach includes short-term (Pontes) and long-term (Appia) solutions.
The European Central Bank (ECB) plans to launch a blockchain-based settlement pilot program in late 2026. This initiative, known as Pontes, aims to connect the eurozone’s core payment infrastructures with the Eurosystem’s distributed ledger technology (DLT) platforms.
In a press release published on July 1, ECB announced that it intended to implement a two-track plan to allow DLT transactions with the aid of the central bank money.
This is part of its strategy to transform the European financial ecosystem, with a focus on enhancing efficiency and ensuring safety.
ECB’s Two-Track Approach
The first track, which the ECB called the “Pontes,” will offer a short-term solution. It plans on linking DLT platforms to TARGET services, while ensuring that transactions are settled with the apex bank money.
The Pontes track is expected to take effect in Q3 2026 and will incorporate elements from the exploratory DLT research conducted in 2024.
This research evaluated a unified settlement system using central bank money and included 50 experiments with participation from 64 entities.
As part of this short-term strategy, additional modifications to the TARGET Services may be considered. Further DLT-related trials and experiments may also be conducted prior to the official launch of the Pontes pilot.
The second track, known as “Appia,” focuses on a longer-term solution aimed at creating an integrated ecosystem in Europe that also supports safe and efficient operations on a global scale.
Under this approach, the Eurosystem will continuously assess DLT-based solutions and collaborate with various stakeholders across both the public and private sectors.
As outlined in the press release, the Eurosystem plans to maintain ongoing communication with the market and provide updates as needed.
To support these efforts, dedicated market contact groups will be established for both Pontes and Appia. An invitation to express interest in joining the Pontes contact group will be issued in the near future.
The European Central Bank has also published a report detailing the results of its exploratory research on distributed ledger technology (DLT). The report highlighted a strong market demand for the settlement of tokenized assets using central bank money.
This development follows the adoption of the Markets in Crypto-Assets (MiCA) regulation by the European Union on December 30, 2024. The MiCA regulation is intended to establish a unified regulatory framework for crypto asset market participants across the EU.
Reflecting this growing trend, Robinhood recently launched tokenized trading on the Arbitrum Layer 2 blockchain, enabling 24/7 commission-free trading of popular stocks like OpenAI and SpaceX with dividends paid directly through the app.
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