Last Updated on September 23, 2026 by TMB
The European Central Bank (ECB), along with the rest of the Eurosystem, has announced the launch of Pontes, a token-powered transaction solution. Built as a settlement bridge, Pontes enables member institutions to initiate and process wholesale transactions using tokenized assets.
The Eurosystem will allow credit institutions to access the solution, tokenize real-world assets (RWAs), and settle trades with central bank money. In general, tokenization involves creating or issuing assets (tokens) to represent RWAs on a distributed ledger network (DLT). This process, powered by DLTs like blockchain technology, is expected to reduce transaction processing time and improve all-round efficiency. In addition to speeding up transactions, tokenization also supports transaction automation.
ECB to Scale Financial System Through Tokenization
In an official release, the ECB said Pontes will expand the European financial system.
“Pontes brings the stability and trust of central bank money to the European tokenized finance ecosystem. It will give an important advantage to help it scale,” explains ECB Executive Board member Piero Cipollone.
The release also says the market is already interested in Pontes, as a few institutions and DLTs have been onboarded and can already begin using the solution. Several other participants are expected to join Pontes in the next few months. The ECB says that the introduction of Pontes shows that Europe is interested in and ready for the kind of innovation that can transform financial services in the Eurosystem. It also adds that Pontes will be continually developed as market demands evolve.
In addition to the launch, the ECB plans to invest in tokenized securities to gain practical experience on the best ways to use DLTs in financial markets. However, preparatory work for initial investments will be limited to euro-denominated securities issued by euro area governments and European supranational institutions.
The announcement comes only days after the ECB released a consumer expectations survey report, which concluded that median consumer perceptions of inflation over the previous 12 months from August remained unchanged at 3.5%, as in July. However, median expectations increased from 2.7% in July to 2.9% in August. In addition, while economic growth expectations over the same period remained unchanged at -1.2%, actual unemployment rates dropped from 11.2% in July to 11.0% in August.
Internal Governance in the ECB
As the ECB closely watches the economy, the institution’s staff committee is watching the apex bank’s leadership and is currently seeking clarification on internal governance. Specifically, the committee wants the bank’s leadership to state whether President Christine Lagarde will remain in her position until the end of her term or leave early.
According to reports, Lagarde has said she will leave in 2027 but has not said whether she will exit before the official end of her tenure in October 2027. Unsatisfied, staff representatives wrote a letter to the ECB’s Executive board, saying that “prolonged uncertainty” could erode trust in the organization and complicate leadership succession plans.
