Full implementation is expected by 2028 and Pontes will gradually expand its services and operating hours to accommodate more participants.
The European Central Bank (ECB) launched Pontes, a system that allows financial institutions to settle wholesale tokenized asset transactions in central bank money, providing an alternative to private settlement assets such as stablecoins.
ECB announcement Monday’s launch of Pontes is part of the Eurosystem’s strategy for tokenized finance. The system initially offers a core set of services, with full implementation expected by 2028.
Tokenization represents assets as digital tokens, typically on a distributed ledger technology (DLT) network. The ECB said it could make wholesale transactions faster and more efficient by consolidating issuance, trading, settlement, custody and servicing on a single platform while enabling automation through smart contracts.
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