ECB approves plans for DLT settlement using central bank money
02 July 2025 Europe
Image: SamiaAkter/stock.adobe.com
The European Central Bank’s (ECB’s) Governing Council has approved a plan that will enable settling distributed ledger technology (DLT) transactions using central bank money.
Following a two-track approach, the initiative will begin with ‘Pontes’ which will provide a short-term offering to the market, including a pilot phase.
The second track ‘Appia’ focuses on a potential long-term solution for an innovative and integrated ecosystem in Europe that also facilitates safe and efficient operations at the global level.
Pontes will offer a Eurosystem DLT-based solution, linking DLT platforms and TARGET Services to settle transactions in central bank money.
The Eurosystem plans to launch a pilot for Pontes by the end of the third quarter of 2026. It will offer a single solution which incorporates features used in the Eurosystem's exploratory work on DLT in 2024.
During the pilot, the Eurosystem will also explore the feasibility of further enhancements in line with the TARGET Services operational, legal, and technical standards.
Between now and the launch of the Pontes pilot, the Eurosystem will consider requests for further DLT-related trials and experiments.
In addition, the Eurosystem will actively continue to analyse DLT-based solutions and collaborate with public and private stakeholders.
To ensure continuous dialogue with the market, the Eurosystem will establish dedicated market contact groups for both Pontes and Appia. A call for expressions of interest in participating in the Pontes contact group will be published soon.
Both Pontes and Appia will build on the Eurosystem’s exploratory work on new technologies for wholesale central bank money settlement, which was conducted between May and November 2024.
In this exploratory work, 64 participants conducted over 50 trials and experiments. A dedicated report outlining the results of the exploratory work has since been published.
Following a two-track approach, the initiative will begin with ‘Pontes’ which will provide a short-term offering to the market, including a pilot phase.
The second track ‘Appia’ focuses on a potential long-term solution for an innovative and integrated ecosystem in Europe that also facilitates safe and efficient operations at the global level.
Pontes will offer a Eurosystem DLT-based solution, linking DLT platforms and TARGET Services to settle transactions in central bank money.
The Eurosystem plans to launch a pilot for Pontes by the end of the third quarter of 2026. It will offer a single solution which incorporates features used in the Eurosystem's exploratory work on DLT in 2024.
During the pilot, the Eurosystem will also explore the feasibility of further enhancements in line with the TARGET Services operational, legal, and technical standards.
Between now and the launch of the Pontes pilot, the Eurosystem will consider requests for further DLT-related trials and experiments.
In addition, the Eurosystem will actively continue to analyse DLT-based solutions and collaborate with public and private stakeholders.
To ensure continuous dialogue with the market, the Eurosystem will establish dedicated market contact groups for both Pontes and Appia. A call for expressions of interest in participating in the Pontes contact group will be published soon.
Both Pontes and Appia will build on the Eurosystem’s exploratory work on new technologies for wholesale central bank money settlement, which was conducted between May and November 2024.
In this exploratory work, 64 participants conducted over 50 trials and experiments. A dedicated report outlining the results of the exploratory work has since been published.
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