ECB Tokenized Central Bank Money Essential for Scaling DLT Markets Cipollone Says

On 21 September 2026 the Eurosystem launched Pontes, an operational service that links market DLT platforms to existing TARGET Services for wholesale settlement of tokenized asset transactions in central bank money. ECB Executive Board member Piero Cipollone said the service brings the stability and trust of central bank money to the European tokenized finance ecosystem and gives an important advantage to help it scale.

ECB Tokenized Central Bank Money Underpins Pontes Settlement

Pontes began with core features including one-off onboarding fees. Enhancements are scheduled progressively, with targets for 24/7 operation, greater programmability, resilience and multi-currency capability by mid-2028. Initial participants include Deutsche Bank, Santander, Société Générale, Axiology, Cashlink, Clearstream and SWIAT. Deutsche Bundesbank joined as a market participant, and gradual onboarding continues.

The service builds directly on 2024 Eurosystem exploratory work conducted from May to November. That phase involved 64 participants across nine jurisdictions, more than 50 trials and experiments, and roughly €1.6 billion in transactions. Results confirmed sustained demand for risk-free central bank money settlement on DLT platforms.

Cipollone has repeatedly noted that tokenized central bank money serves as the essential risk-free settlement anchor in scaled DLT markets. It supports payment finality, prevents fragmentation, avoids reliance on private assets that carry credit risk, and helps maintain convertibility of tokenized deposits and stablecoins while preserving monetary sovereignty and the two-tier banking system.

Background on Tokenization and Appia Initiative

Tokenization converts assets into DLT tokens and enables atomic settlement, smart-contract automation and bundling of lifecycle steps. Europe has issued approximately €4 billion in DLT-based fixed-income instruments since 2021 under frameworks such as MiCA and the DLT Pilot Regime. ECB Tokenized Money Essential for Scaled DLT Markets Cipollone Warns provides additional context on the policy discussion.

A complementary longer-term Appia initiative has a roadmap published around March 2026. The project involves public-private collaboration to design an integrated European tokenized financial ecosystem blueprint, with work expected to conclude around 2028. Broader legal harmonization, including securities law, remains under discussion as a supportive measure for scaling.

Next Steps for Pontes and Eurosystem DLT Integration

Planned Pontes upgrades focus on extended availability and programmability features. Parallel Appia development continues to shape the overall tokenized finance blueprint. Market participants can monitor onboarding announcements from the Eurosystem and national central banks as the participant base expands.

These developments align with ongoing Eurosystem efforts to maintain central bank money as the settlement standard across emerging DLT infrastructures. Cipollone has framed the approach as necessary to deliver the advantages of tokenization while keeping payment systems anchored in risk-free assets.