ECB Tokenized Money Essential for Scaled DLT Markets Cipollone Warns

ECB Executive Board member Piero Cipollone stated in mid-October 2026 that tokenized central bank money serves as the necessary risk-free settlement anchor for scaled DLT markets. Without it, sellers of tokenized assets risk receiving volatile private instruments such as tokenized deposits or stablecoins, which could fragment markets and undermine the singleness of money.

ECB Tokenized Money Role in Pontes Settlement Service

Cipollone pointed to the Eurosystem Pontes service, launched on 21 September 2026, as the operational link between private DLT platforms and TARGET Services. Pontes enables delivery-versus-payment settlement of wholesale tokenized assets directly in central bank money and delivers finality. The service started with 13 market participants, including Deutsche Bank, Santander, Société Générale, KfW and the European Investment Bank, plus four DLT operators: Axiology, Cashlink, Clearstream and SWIAT. Deutsche Bundesbank also joined at launch.

Planned enhancements include extended operating hours and immediate finality on an Eurosystem DLT platform. Full implementation, including 24/7 operations, is targeted for mid-2028. The complementary Appia project examines longer-term architecture, standards and governance for an integrated European tokenized ecosystem, with a blueprint expected around 2028. Together the projects aim to maintain the two-tier monetary system while supporting scalability of tokenized assets.

Isabel Schnabel outlined three models for placing central bank money on-chain during an October 2026 speech: direct issuance of tokenized reserves, an interoperability layer linking TARGET to DLT platforms, or private issuance of settlement tokens backed by central bank reserves. Pontes follows the second model.

Market Experiments and Next Steps for Tokenized Assets

Earlier Eurosystem exploratory work in 2024 involved more than 50 trials across nine jurisdictions and processed approximately €1.6 billion in transactions. Results confirmed demand for central bank money settlement on DLT. DLT assets became eligible as collateral for Eurosystem operations from March 2026. On 21 September 2026 the ECB announced it would invest a small portion of its own funds in tokenized euro-area public and supranational securities settled through Pontes.

Further Pontes onboarding and technical upgrades continue. Appia work will produce an ecosystem blueprint around 2028. Digital euro regulation is targeted by the end of 2026, potentially enabling a 12-month pilot with 36 providers in the second half of 2027 and issuance around 2029. Market participants have also called for a comprehensive EU legal framework for tokenized assets beyond the existing DLT Pilot Regime.

These developments align with parallel Eurosystem efforts on digital euro rulebook consultation and MiCA stablecoin oversight, reinforcing the role of central bank money across both retail and wholesale layers.