The European Central Bank has introduced Pontes, a new tool designed to facilitate wholesale transactions in tokenized assets using central bank money. The system leverages distributed ledger technology to streamline the asset lifecycle, including issuance, trading, and settlement, while utilizing smart contracts for automation.
The launch of Pontes follows a series of tests conducted by the Eurosystem in 2024, which confirmed the market demand for a risk-free settlement asset. The ECB plans to roll out the platform with a core set of services, gradually expanding features and operating hours until full implementation is reached by 2028.
In parallel, the ECB is advancing its retail digital euro project. The bank has invited online and mobile merchants to participate in a pilot program scheduled to commence in the second half of 2027. This 12-month initiative aims to gather feedback on technical specifications through a simulated ecosystem.
The digital euro project, which officially began in 2023, is partly driven by efforts to reduce reliance on non-European payment providers. The initiative seeks to establish a sovereign alternative to existing credit card schemes, addressing concerns regarding the current architecture of money movement within the Eurozone.
