The European Central Bank has launched the Pontes payment system for blockchain settlements, facilitating transactions in tokenized euros.
The European Central Bank (ECB) has launched the Pontes payment system, a new initiative aimed at facilitating blockchain settlements, according to reports from Reuters.
As detailed on the project's official website, Pontes serves as a bridge between market platforms utilizing distributed ledger technology and TARGET services for wholesale payment transactions.
This innovative platform allows banks and investors to execute transactions using tokenized euros, which are secured by reserves held at the ECB.
The initial launch includes a select group of participants such as Deutsche Bank, Santander, and Clearstream. The system will be operational on weekdays from 8:00 AM to 4:00 PM (UTC+1), with a broader rollout planned for 2027 that will introduce additional features.
ECB representatives believe that Pontes will enhance transaction efficiency by integrating various stages of an asset's lifecycle and automating related processes.
Moreover, the ECB revealed intentions to invest in blockchain-based securities, specifically focusing on high-rated euro-denominated debt instruments issued by government entities.
Other central banks are also exploring similar blockchain projects; for instance, the Swiss National Bank is working on Project Helvetia for securities settlements, while the Bank of England is piloting blockchain applications in its Digital Securities Sandbox.
Additionally, on September 15, the ECB began accepting applications from electronic and mobile commerce companies in the eurozone for participation in its digital euro pilot program.
