ECB plans tokenized euro for wholesale settlement as Pontes launches in September
Isabel Schnabel backs direct ECB issuance for blockchain-based institutional settlement while stablecoins remain complementary and Pontes links distributed-ledger platforms with TARGET Services.
The core elements are directly confirmed by ECB primary sources. In "Central banks on-chain," Schnabel supports native tokenised central bank reserves and explicitly distinguishes the complementary role of stablecoins from their inability to substitute for central bank money. "Digital assets, payment efficiency and monetary policy" confirms a September 2026 Pontes launch for tokenised central bank money settlement. The ECB's Project Agorá findings independently confirm that Pontes is planned to connect market DLT platforms with TARGET Services in September 2026. The wording "direct ECB issuance" is a reasonable summary of Schnabel's preference for native on-chain central bank money, though the ECB sources frame this as Eurosystem central bank reserves rather than a retail digital euro.
The European Central Bank is preparing a tokenized euro issued directly on blockchain infrastructure for wholesale settlement by banks and financial institutions, separate from its retail digital euro initiative. Executive Board member Isabel Schnabel said tokenized markets need an asset only a central bank can create, while stablecoins should complement rather than replace central bank money. The Eurosystem's Pontes project is scheduled to launch in September, although another account describes it as going live next month, linking market distributed-ledger platforms with TARGET Services and initially retaining legal cash finality within T2. A May-to-November 2024 pilot involving 64 institutions across nine jurisdictions settled nearly €1.6 billion across 58 payment and securities-settlement use cases. Stablecoin supply stood at roughly $304.6 billion, while euro-pegged tokens represented less than $1 billion, according to DeFiLlama data cited in the accounts. The parallel Appia project is assessing the architecture for Europe's digital settlement infrastructure, with a final determination due by 2028.
- Tokenized euro: A digital representation of central bank money issued directly by the ECB on distributed-ledger infrastructure for wholesale settlement.
- Pontes: A Eurosystem project designed to connect market blockchain platforms with TARGET Services, the eurozone's settlement infrastructure.
- Stablecoins: Digital tokens designed to maintain a stable value, which Schnabel says should complement rather than replace central bank money.