European Central Bank switches on Pontes, letting 13 banks settle tokenised assets in central bank money
Updated: 6 days ago
The euro area now has a live link between tokenised markets and central bank money, the safest settlement asset there is. The Bank of England's equivalent work is still at the testing stage, with no date for a live service.
The European Central Bank (ECB) launched Pontes on 21 September 2026, a service that lets wholesale trades in tokenised assets settle in central bank money. On the same day the ECB said it will invest part of its own funds in tokenised securities and settle those trades through Pontes.
What Pontes does
Without a link of this kind, the cash side of a tokenised trade has to settle in commercial bank money or in stablecoins. Central bank money is the safest form of money in the system, because it is a claim on the central bank itself rather than on a private firm. Pontes gives tokenised markets access to it.
According to the ECB's announcement, an initial group "has completed onboarding and is ready to start using Pontes immediately". That group includes 13 financial institutions: ABANCA, BayernLB, Caisse des Dépôts et Consignations, Cecabank, Deutsche Bank, DekaBank, DZ Bank, the European Investment Bank, KfW, Memo Bank, NRW.BANK, Santander and Société Générale. Four operators of distributed ledger technology (DLT) platforms, the shared databases on which tokens are recorded, have also connected: Axiology, Cashlink, Clearstream and SWIAT. The Deutsche Bundesbank is taking part as a market participant.
The ECB said more participants will connect in the coming months, that features and operating hours will be extended step by step, and that full implementation is expected by 2028.
"Pontes brings the stability and trust of central bank money to the European tokenised finance ecosystem. It will give an important advantage to help it scale," said Piero Cipollone, a member of the ECB's Executive Board. ECB President Christine Lagarde said the Eurosystem "will continue to make progress in close collaboration with the market."
The ECB as an investor
The second announcement matters as much as the first. The ECB has started preparatory work to put part of its own funds, a portfolio separate from monetary policy that pays for its running costs, into tokenised securities. It will start with euro-denominated bonds issued by euro area central and regional governments, agencies and European supranational bodies.
The ECB did not give an amount or a start date. Its Executive Board will set both once preparation is finished. The stated aim is to gain "first-hand experience across the full investment lifecycle, including trade execution, settlement, systems and portfolio management activities."
A central bank that both runs the settlement service and buys through it is a strong signal to issuers of tokenised government debt that there will be a buyer and a settlement route.
Where the UK stands
The Bank of England is working on the same question through its Synchronisation Lab, which links DLT platforms to its real-time gross settlement system, the core system that settles sterling payments between banks. According to the Bank's website, updated on 5 August 2026, the lab began in spring 2026 for about six months with 18 participants, including LSEG, Ctrl Alt, Chainlink, Partior and Quant. They are testing uses such as delivery versus payment for tokenised securities, cross-border currency trades and collateral management.
The Bank says it will publish findings after the lab and use them to inform work "towards delivering an RTGS synchronisation capability into production". It has not given a date for a live service.
That leaves a gap. Euro trades in tokenised assets can now settle in central bank money in production. Sterling trades cannot yet, and the Bank of England has not set a timetable. For UK firms building tokenised bond or fund platforms, the practical question is whether to launch in euros first.
Key takeaways
The ECB launched Pontes on 21 September 2026, allowing tokenised asset trades to settle in euro central bank money.
13 financial institutions and four DLT platform operators are ready to use it now, with more due in the coming months and full implementation by 2028.
The ECB will invest part of its own funds in tokenised euro government and agency bonds, settled through Pontes. Amount and timing are not yet set.
The Bank of England's Synchronisation Lab is still testing a sterling equivalent, with no date for a live service.
Sources
Eurosystem brings central bank money to tokenised finance, European Central Bank, 21 September 2026
ECB to invest part of own funds in tokenised securities, with settlement via Pontes, European Central Bank, 21 September 2026
Synchronisation Lab, Bank of England, updated 5 August 2026
Frequently asked questions
What is the ECB's Pontes service?
Pontes is a European Central Bank service, launched on 21 September 2026, that lets wholesale trades in tokenised assets settle in euro central bank money. It links tokenised markets to the safest settlement asset in the system, rather than commercial bank money or stablecoins.
Which banks and platforms can use ECB Pontes at launch?
An initial group of 13 financial institutions, including Deutsche Bank, Santander, Société Générale, KfW and the European Investment Bank, completed onboarding. Four DLT platform operators, Axiology, Cashlink, Clearstream and SWIAT, have also connected, and the Deutsche Bundesbank is taking part as a market participant.
When will Pontes be fully implemented?
The ECB expects full implementation of Pontes by 2028. It said more participants will connect in the coming months and that features and operating hours will be extended step by step.
Will the ECB invest its own funds in tokenised securities?
Yes. The ECB has started preparatory work to invest part of its own funds in tokenised euro-denominated bonds from euro area governments, agencies and supranational bodies, settled through Pontes. It has not given an amount or a start date.
Does the Bank of England have an equivalent to Pontes?
Not yet in production. The Bank of England is testing links between DLT platforms and its real-time gross settlement system through its Synchronisation Lab, which began in spring 2026 with 18 participants, and has not given a date for a live service.
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