ECB Rolls Out Pontes to Connect Tokenized Markets With Central Bank Settlement

Highlights:

• The ECB has launched Pontes, giving banks a way to settle tokenized assets in central bank money.
• Pontes connects DLT platforms with TARGET Services, helping banks handle tokenized transactions more smoothly and efficiently.
• Lagarde said digital euro legislation could be completed this year, with the pilot still planned for mid-2027.

The European Central Bank (ECB) has launched Pontes, a new system that allows financial institutions to settle tokenized asset transactions in central bank money. The platform went live on September 21, 2026 and connects distributed ledger technology, or DLT, platforms with the Eurosystem’s TARGET Services.

ECB President Christine Lagarde announced the launch during the Eurogroup meeting in Dublin. She described Pontes as a form of “digital euro made available for banks.”

Lagarde said:

“It’s digital euro made available for banks so that they can transact amongst themselves using tokenized assets and distributed ledger technology.”

She added that the system can help banks operate faster and with less friction when using tokenized assets.

🇪🇺BREAKING: ECB launches “Digital Euro” for banks as Pontes begins tokenized finance pilot.

President of the European Central Bank, Christine Lagarde announces The ECB is launching Pontes today, a platform that will connect private blockchain networks with the TARGET system,… pic.twitter.com/ufP3oKPAJ6

— Coin Bureau (@coinbureau) September 21, 2026

ECB Links Tokenized Markets With TARGET Services Through Pontes

According to the ECB, Pontes connects DLT platforms with the Eurosystem’s existing settlement infrastructure. This allows eligible financial institutions to settle tokenized transactions using central bank money. Pontes also supports delivery-versus-payment, or DvP. Under this process, the asset and the payment are transferred together. This can reduce settlement risk between the parties involved. The system brings tokenized financial markets closer to the infrastructure already used by European banks.

Bank Pushes Ahead With Digital Euro Plans

Lagarde also spoke about the ECB’s wider digital euro plans. She said the ECB hopes legislation related to the digital euro will be completed before the end of 2026. That would allow the project to move toward its planned pilot stage in mid-2027.

“We very much hope that the piece of legislation that is currently under debate concerning the digital euro will see its completion and finalization before the end of this year, and the earlier the better,” she added. The ECB is therefore moving on two areas at the same time. Pontes is already bringing central bank money into tokenized wholesale markets, while work on the broader digital euro project continues.

ECB Expands Work on Tokenized Finance

Pontes is part of the Eurosystem’s wider push into tokenized finance. Banks and financial firms are increasingly testing DLT for securities, bonds and other financial assets. Pontes gives those systems a way to settle transactions through central bank infrastructure.

Lagarde said the launch is only the beginning of the project. “Not the end of the journey. We continue to work and more will be developed, but it’s beginning on Monday,” she added.

The ECB is also working on Appia, a longer-term initiative focused on developing a more integrated digital asset market in Europe. Pontes gives eligible financial institutions a direct way to settle tokenized assets in central bank money. Its September 21 launch marks a practical step in the ECB’s move toward DLT-based financial markets.