ECB Plans Tokenized-Securities Investment to Test Pontes Settlement Platform

  • The ECB plans to invest a small reserve allocation in tokenized securities.
  • Pontes will support purchases, settlement and portfolio management for the ECB's test.
  • The Executive Board will decide the investment details after preparatory work concludes.

The European Central Bank plans to invest a small portion of its reserves in tokenized securities and use the Eurosystem's Pontes platform to test blockchain-based financial-market operations from an investor's perspective. Initial purchases will focus on euro-denominated securities issued mainly by euro-area governments, local authorities, public institutions and European supranational bodies. Pontes links distributed-ledger market platforms with TARGET services, allowing tokenized assets to settle in central-bank money. The ECB's Executive Board will determine the investment's size, timing and management approach after reviewing issuance levels and the growth of Europe's tokenized-finance market. The platform has begun with limited services and is scheduled for broader functionality and longer operating hours, with full implementation targeted for 2028.

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