The European Central Bank (ECB) has approved a framework to enable the settlement of distributed ledger technology (DLT) transactions in central bank money.
The initiative, announced today, will follow a dual-track approach.
The first track, dubbed “Pontes”, will offer a short-term solution linking DLT platforms with the Eurosystem’s TARGET Services. A pilot phase is scheduled to launch by the end of Q3 2026.
The ECB said Pontes will incorporate features tested during its 2024 exploratory work, which involved 64 participants and over 50 trials.
The second track, “Appia”, is focused on developing a long-term, integrated DLT ecosystem for Europe. It aims to support safe and efficient cross-border operations and will involve ongoing collaboration with public and private stakeholders.
To facilitate industry input, the ECB will establish dedicated market contact groups for both tracks, with a call for expressions of interest in the Pontes group expected shortly.
The move underscores the ECB’s commitment to embracing innovation while maintaining the integrity and efficiency of the financial system. A detailed report on the 2024 trials has also been released alongside the announcement.
