ECB to Pilot Blockchain-Based Euro Settlement System by 2026
The European Central Bank (ECB) is preparing to launch a pilot program for a blockchain-based euro settlement system by late 2026. This initiative, called ‘Pontes,’ will connect distributed ledger technology (DLT) platforms with the eurozone’s core payment infrastructure. The move represents a significant step in modernizing Europe’s financial systems while maintaining security and efficiency.
Two-Pronged Strategy for Financial Innovation
The ECB’s approach consists of two complementary tracks:
- Pontes: A near-term solution integrating DLT with existing ‘TARGET’ payment services
- Appia: A long-term vision for creating a globally integrated financial ecosystem
Market Validation Through Recent Trials
ECB testing has demonstrated strong demand for settling tokenized assets using central bank money. Trials involving 64 participants processed over €1.6 billion in transactions, showcasing DLT’s potential to streamline capital markets.
Global Context and Collaborative Development
This initiative aligns with worldwide central bank explorations of blockchain technology. Following the Bank of England’s successful 2023 DLT trials, the ECB plans extensive collaboration with both public and private sector partners to drive innovation forward.
