On September 21, the European Central Bank (ECB) will launch Pontes, a new Eurosystem infrastructure designed to connect distributed ledger platforms with TARGET Services. This initiative aims to enable the settlement of tokenized wholesale transactions in central bank money, enhancing the efficiency and safety of digital finance. ECB President Christine Lagarde is scheduled to deliver opening remarks at a launch roundtable in Frankfurt.
Pontes, meaning "bridges" in Latin, will facilitate transactions involving tokenized assets by integrating them into the Eurosystem's existing central-bank settlement infrastructure. This system is specifically targeted at financial institutions and market infrastructures, not individual consumers, and is distinct from the proposed retail digital euro. The platform will allow tokenized deposits, commercial paper, and bonds to settle in central bank money, addressing a key limitation in previous tokenization pilots that often relied on conventional bank accounts for cash settlement.
During its testing phase, between May and November 2024, the Eurosystem collaborated with 64 market participants, conducting over 50 trials and experiments. These trials processed more than €1.5 billion ($1.6 billion USD equivalent) in transactions, demonstrating the system's capabilities. Clearstream and Axiology have already signed up to participate in the launch cohort, following comprehensive end-to-end testing.
Initially, Pontes will have some limitations. It will operate from 09:00 to 16:00 CET on T2 business days, settle only in euro, and not support netting. The fee structure includes a one-off charge of €2,500 ($2,680 USD equivalent) per participant and €15,000 ($16,080 USD equivalent) per operator. The Eurosystem plans to introduce longer operating hours and finality on its own ledger by 2027, with 24/7 operation and multi-currency support targeted for mid-2028. Four market DLT operators—Clearstream, SWIAT, Cashlink, and Axiology—are registered to facilitate these tokenized asset transactions.
Despite years of experimentation in the tokenized market, transaction volumes have been relatively low. In 2025, European issuers placed €893 million ($957 million USD equivalent) in DLT-based bonds, a decrease from €1.7 billion ($1.8 billion USD equivalent) in 2024. The lack of access to central bank money for settlement was identified as a significant barrier by ESMA in its 2025 review. The introduction of Pontes is expected to address this gap, providing a secure and efficient rail for the settlement of tokenized assets in central bank money, particularly for new fixed-income issuances.
