ECB Begins Tokenised Securities Investment via Pontes

The European Central Bank launched preparatory work on 21 September 2026 to invest a small portion of its own funds in tokenised securities. Initial purchases will focus on euro-denominated tokenised securities issued by euro-area central governments, regional governments, agencies, and European supranational institutions.

The ECB's own funds portfolio is a non-monetary policy portfolio that generates income to help fund its operating expenses, excluding supervisory tasks. The Executive Board will determine operational details and timing after preparatory work is completed, based on developments in tokenised issuances and the broader tokenised financial ecosystem in Europe. This action supports the Eurosystem’s strategy to make central bank money fit for the digital age.

Pontes enables central bank money settlement for tokenised assets

Transactions will be settled in central bank money via Pontes, the Eurosystem's settlement solution for DLT transactions. The Pontes system was officially launched by the Eurosystem. It connects distributed-ledger market platforms with the Eurosystem's existing TARGET settlement services.

André Dragosch said it allows financial institutions to settle tokenized transactions with one another while retaining central-bank money as the settlement asset. Initial participants in Pontes include several major banks and institutions.

Initial DLT operators in Pontes include Clearstream, SWIAT, Cashlink, and Axiology. Pontes is launching with a limited set of services, with full implementation planned by 2028.

ECB seeks hands-on experience to build DLT expertise

The initiative aims to gain practical experience as an investor and build institutional expertise in distributed ledger technology. The ECB will gain first-hand experience across the full investment lifecycle: trade execution, settlement, systems, and portfolio management.

This planned investment program will give the ECB direct exposure to the transaction lifecycle that it is asking financial institutions to adopt. Using Pontes will give it experience with trade execution, settlement, technology systems and portfolio management. The goal is hands-on experience with the full lifecycle of tokenized assets via direct investment.

Broader context: Appia, digital euro, and ecosystem development

The ECB’s tokenised securities effort complements the Appia blueprint for a European DLT financial ecosystem. The Appia initiative will deliver a blueprint for a tokenised financial ecosystem in Europe, intended to produce a blueprint for an integrated European DLT financial ecosystem by 2028.

Pontes is separate from Europe's consumer-facing digital euro project. The ECB plans a 12-month retail pilot beginning in the second half of 2027. These are separate tracks for extending central-bank money into digital infrastructure.

The ECB’s Executive Board will finalise the plan based on developments in the tokenised financial ecosystem.